How do you positively involve members of an upcoming generation, varying in age and interest levels, in the family office?
There is an often a huge barrier to involving the next generation in the family office or investment business. Incorporating venture capital as a key facet of one's investment strategy engages and informs younger family members to become more involved in the business and leads to a smoother transition in the future.
One of the winners of last year's home-run IPO of Snap Inc., the parent company of Snapchat, was venture capitalist Barry Eggers. In a blog post, Barry discussed how he came across the opportunity by understanding the app usage and trends of his then-high school daughter.
While generational cohorts such as “Baby Boomers,” “Gen X,” and “Millennials” receive significant attention, “Generation Z” is often overlooked. According to Forbes, Generation Z is defined as individuals born between the mid-1990s and early 2000s and accounts for more than 25% of the US population. In some ways, it is the first generation that has not experienced the world without the internet. Generation Z is more digitally native, mission-driven and entrepreneurial (according to Millennial Branding, 17% of Generation Z wants to start their own business as compared to just 11% of millennials). The way digital media and information are being consumed is changing and investing in venture capital allows family offices to be on the forefront of that innovation.
The venture capital asset class seeks to invest in ideas today to build a better world tomorrow. We believe that investing in venture capital not only provides insights into public markets but allows for greater next-generation involvement.
If you are interested in learning more about the role of venture capital within family offices, feel free to contact us at email@example.com.
Originally published in the March 2018 LVAM Newsletter.