Inside the mind of a family office investor

Family offices are playing a growing role in venture capital, as highlighted during the Luxembourg Venture Days panel “Family Offices in Ventures: Lessons from the Front Line”. We asked seasoned investors to share their top dos and don’ts. Here is what they said.

Conviction versus caution

Owen Reynolds, Investment Director at Innotek, reminded the audience that family offices approach venture capital in different ways. For many, the asset class is seen as risky, often avoided due to limited knowledge and insight.

There are a lot of different right ways and a lot of different wrong ways.
Owen Reynolds, Investment Director, Innotek

His advice to inexperienced family office investors is to start with fund of funds to reduce risk and avoid burning money.

Philipp Langnickel of TKM Family Office invests mainly at pre‑seed stage, guided by conviction. “I commit before everyone else,” he explained, emphasising trust and early belief in founders. His approach is about identifying excellence through strong theses on future trends. Yet he warns that contracts must be read carefully, as overlooking clauses can cost investor rights and ultimately money.

By contrast, Pierre‑Etienne Lorenceau of Climate Leaders Fast‑Track avoids pre‑seed. For him, traction and tested products are essential. He compared the search for promising startups to a long process of trial and error.

You have to kiss 80 frogs to maybe find one princess.
Pierre‑Etienne Lorenceau, Founder & Chairman, Climate Leaders Fast‑Track

His dos and don’ts include ensuring rounds cover 18–24 months, coinvesting with smart money, and testing both product and competitors before committing.

Fund of funds and networks

Several panellists stressed that family offices should not go it alone. Paulo Bilezikjian of Analytica CP noted that “Europe is an amazing place to invest in VC” thanks to talent and easy connections. His advice: pay the extra money for a fund of fund, leverage networks, base decisions on historical data and be patient.

David Vlerick of Bluegrass Ventures highlighted that venture capital is a specialist game requiring access to the right deal flow. His systematic approach focuses on funds with top track records, competitive advantages and validated networks. For him, outperformance comes from relentless managers who identify trends early and build strong teams.

Lessons for startups and co‑investors

These different testimonials underline how diverse family office styles can be, from conviction‑based angels to climate‑focused strategists. For startups, the message is to build trust, show traction and present a team that inspires confidence. For co‑investors, the takeaway is to read the fine print, align with smart money and remember that venture capital is about persistence and networks.