Startups Are Realising Benefits Of Having Family Offices On Their Side: Dr Aarti Gupta

SUMMARY

A few years ago, there was a chase to get VC funds on the cap table, but now, founders are realising the benefits family offices bring to the table, says Dr Gupta

According to Dr Gupta, there’s a lot of value in having family offices on the startup cap table as they bring in experience, mentorship and networks like no other

The number of family offices actively participating in startup investments annually will likely jump 5X to 735 by 2030 from 123 in 2023, per Inc42 estimates

Indian startups have grown past the phase of seeking venture capital funding. They are warming up to the idea of funding from family offices, according to Dr Aarti Gupta, chief investing officer of DBR Ventures, the family office of the Jagran Group.

Dr Gupta was speaking at a panel discussion at Inc42’s MoneyX event in Gurugram, which also featured Munish Randev, the founder and CEO of Cervin Family Office & Advisors, and Deepak Padaki, the president of N. R. Narayana Murthy’s Catamaran.

“A few years ago, there was a chase to get VC funds on the cap table. But now, founders are realising the benefits family offices bring to the table. Family offices are run by entrepreneurs who already run and take companies public,” said the CIO of DBR Ventures.

“So, there’s a lot of value in having them on your cap table because they bring in experience, mentorship and networks like no other,” Dr Gupta said.

Citing Info Edge founder Sanjeev Bikhchandani’s comments earlier during the day, Dr Gupta said, “The patience capital is also a great value addition. Because we’re not a fund, there’s no exit pressure. We can stay invested with a startup for as long as it requires.”

Dr Gupta also mentioned that many family offices fund startups as well as startup funds, as many of them first contribute to VC funds, gain experience and then move into startup investing.

The comments from Dr Aarti Gupta come as Indian and global family offices are looking at India’s startups as an emerging asset class. According to an Inc42 report, India has 300-plus family offices.

These offices have increasingly placed their bets on seed stage startups across sectors like fintech, ecommerce and enterprise tech. Inc42 also estimates that the number of family offices actively participating in startup investment annually will likely jump 5X to 735 by 2030 from 123 in 2023.

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