Blockchain
Family Offices Are Active and Optimistic Investors in Venture Capital, According to SVB Capital and Campden Wealth Report
SVB Capital, the global venture capital investment arm of SVB Financial Group (NASDAQ: SIVB), today released “Family Offices Investing in Venture Capital – 2021-2022,” a four-part report developed in partnership with Campden Wealth. Part one, entitled, “A Roadmap to VC Success,” looks at the venture investing maturity model, investment structures and how venture deals are sourced. The report also includes lessons learned and tips from experienced family offices to those just starting out in the asset class.
Within SVB Capital, the Family Office Practice works with qualified family offices to provide curated access to private investment opportunities both within SVB Capital and with fund managers and venture-backed companies. SVB LIFT, SVB Capital’s invite-only platform connects LPs to a curated set of venture funds. If interested, please contact Shailesh Sachdeva for more information.
“We are incredibly excited to share the findings of our 2nd annual ‘Family Offices Investing in Venture Capital’ report,” said Barry O’Brien, Head of the Family Office Practice at SVB Capital. “Our team has had conversations with hundreds of family offices around the globe, helping them access the venture ecosystem through Fund of Funds, direct VC funds or directly into world class startups. The key observation from those conversations, further validated by this year’s report, is that most family offices follow a similar path when investing in venture. Most start by investing in fund of funds to gain access to established (and often access-constrained) venture funds, while also making ad-hoc investments based on recommendations by friends and other family offices, and finally invest directly into venture funds and startups.
“With so many exciting and potentially transformative technological innovations occurring – in blockchain, AI, machine learning, the Internet of Things, and so on – it is quite understandable that venture investment continues to set records around the world,” said Dominic Samuleson, CEO of Campden Wealth. “Family offices are becoming increasingly sophisticated VC investors – developing their networks and building in-house expertise – and their VC investments are growing, quickly. I am delighted that we have been able to, once again, collect this highly scarce information from our global network of experienced families to support newer entrants.”
Global findings
Following are the key findings from SVB Capital and Campden Wealth’s global report, which surveyed 139 representatives of ultra-high net worth (UHNW) families and family offices with experience in innovation and venture capital investing between June and September 2021. Participants represented family offices in offices in North America, Europe, Asia-Pacific, Latin America and the Middle East. In addition to the survey, in-depth follow on interviews were conducted with 10 family office representatives. The responding single-family offices had an average of $989 million assets under management (AUM) and the responding multi-family offices had an average of $1.9 billion AUM. The full report is available at https://www.fa-mag.com/news/family-offices-raise-bets-on-start-ups-in–418-billion-market-64301.html.
Family offices progress through a similar path in their venture capital investing journey
Although every family office is unique, their venture investing journeys are similar. Most start investing in fund of funds, then venture funds, and finally directly into startups.
Family office participation in venture continues to increase
Startups are increasingly open to direct investments from family offices, alongside venture funds. Family offices, in turn, are investing strategic capital, adding value based on their operating businesses and network connections. The average family office venture portfolio comprises 17 direct investments and 10 fund investments, and within the next 24 months, family offices expect to make 18 new investments.
Sixty-seven percent of family offices rely on their existing network for deal flow
The best venture deals continue to be hard to access. Most family offices rely on their existing networks, GPs of venture funds, founders, and other family offices for deal flow. Only 1% currently use digital platforms, such as SVB LIFT.
Family offices are focused on growth and cross-sector
Investments tend to be focused on growth investments, representing 48% of the venture portfolio, followed by 28% in pre-seed and seed investments and 24% in Series A investments.
18% of FOs have venture investments in Life Sciences, e.g., biopharma, drug discovery, medical devices, diagnostics, etc. Energy & Resource Innovation, including climate and sustainability, is an increasing area of focus.
Family office staff and VC teams are growing, but top talent is in short supply
Today the average family office staff consists of 15 members, including two VC investment professionals, with plans to bring in one additional investment specialist within the next five years. However, talent remains scarce and competition is fierce for top talent.
Blockchain
Ebang International Reports Financial Results for Fiscal Year 2023
Blockchain
FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers
A recent warning from the FBI regarding a crypto money transmitter seems to be aimed at the Samourai Wallet. This development highlights the increasing scrutiny and regulatory challenges faced by privacy-focused cryptocurrency wallets and services.
The FBI warning raises concerns about the use of certain cryptocurrency wallets that prioritize user privacy and anonymity, potentially enabling illicit activities such as money laundering and terrorist financing. While the warning does not explicitly name any specific wallet or service, the language used suggests that the Samourai Wallet may be the target of the advisory.
Samourai Wallet is known for its focus on privacy and security features, including coin mixing and stealth addresses, which aim to enhance user privacy and protect against surveillance and tracking. However, these features have drawn the attention of law enforcement agencies and regulators, who are increasingly concerned about their potential misuse by criminals.
The FBI warning underscores the challenges faced by privacy-focused cryptocurrency wallets in navigating regulatory compliance and law enforcement scrutiny. While these wallets aim to empower users with greater control over their financial privacy, they must also address regulatory requirements and law enforcement concerns to avoid legal and reputational risks.
As the cryptocurrency industry continues to evolve, privacy-focused wallets like Samourai Wallet will need to strike a balance between privacy and compliance, ensuring that they can provide robust privacy features while also addressing regulatory concerns and maintaining transparency with authorities. This delicate balance is essential to foster trust and confidence among users and regulators alike, ultimately enabling the continued growth and adoption of privacy-enhancing technologies in the cryptocurrency space.
Source: cointelegraph.com
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Blockchain
Pantera Capital Plans to Raise $1 Billion for New Fund Offering Exposure to Crypto Assets
Pantera Capital is reportedly planning to raise $1 billion for a new fund that offers exposure to various crypto assets, as reported by Blockchain.News. This ambitious fundraising initiative underscores Pantera’s continued confidence in the potential of the cryptocurrency market and its commitment to providing investors with diversified investment opportunities in the digital asset space.
The new fund from Pantera Capital aims to capitalize on the growing demand for exposure to cryptocurrencies and blockchain-based assets among institutional and retail investors. By offering a comprehensive portfolio of crypto assets, the fund seeks to provide investors with access to a wide range of investment opportunities, spanning cryptocurrencies, tokens, and other digital assets.
Pantera’s decision to raise $1 billion for the new fund reflects its optimistic outlook on the long-term growth prospects of the cryptocurrency market. With increasing mainstream adoption and institutional interest in cryptocurrencies, Pantera sees significant potential for value creation and capital appreciation in the digital asset space.
As one of the leading blockchain-focused investment firms, Pantera Capital is well-positioned to attract capital from investors seeking exposure to the cryptocurrency market. The firm’s track record of successful investments and its experienced team of investment professionals are likely to bolster investor confidence and support for the new fund.
Pantera Capital’s plans to raise $1 billion for its new fund underscore its commitment to driving innovation and growth in the cryptocurrency market. As the fund attracts capital and deploys it into promising investment opportunities, it is poised to play a key role in shaping the future of the digital asset ecosystem.
Source: blockchain.news
The post Pantera Capital Plans to Raise $1 Billion for New Fund Offering Exposure to Crypto Assets appeared first on HIPTHER Alerts.
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