Indian family offices double down on startup investments

Indian family offices have become a bigger part of how startups in India raise money, with younger investors now making the calls. A report from Daily Kiran says these offices manage wealth for over 300 families and are putting more into early-stage companies than before.

This matches what StartupReader reported on October 11: family offices are betting more on startups as younger, tech-focused managers take over. Unlike typical venture capital firms, these investors often hold onto their stakes longer and pick companies based on themes they believe in. One example is the Adani family office backing Nudge’s move into receipt-based commerce, which StartupReader first covered on September 29.

Family offices still account for less of the total money going into startups than big VC firms, but they’re changing how deals work. Founders say they face less pressure to sell quickly, and some family offices are even starting their own venture studios, like Eindhoven’s OWOW, which raised €2.65 million from eight family offices in September.

The change also comes as wealth in India shifts from first-generation entrepreneurs to their heirs, many of whom have worked in startups themselves. Whether this kind of patient money will keep flowing beyond a few high-profile deals isn’t certain, but the trend suggests India’s funding scene is settling into a new normal.

Sources: msn.com