Family offices (FOs) have historically taken a more reserved, capital-only approach to investing, content to deploy wealth into established funds or to act as limited partners in someone else’s deal flow. But times are changing. A new breed of family offices, particularly those adjacent to strategic industries, aren’t just writing checks—they’re leaning in and helping to or even originating ventures that will define tomorrow’s markets. These FO's can leverage their unique assets, credibility, and networks to guide new startups from concept to category leadership. Some even become the de facto “king-makers,” producing innovations that competitors might eventually pay a premium to access.
The sheer scale of wealth managed by family offices is staggering. Deloitte's report reveals that the total wealth held by families with family offices is expected to reach an eye-watering $9.5 trillion by 2030, more than doubling over the decade. To put this in perspective, the entire hedge fund industry managed approximately $4.3 trillion in assets as of Q2 2023, according to Hedge Fund Research. - Forbes
The Evolution of the Family Office Role
In a traditional setup, family offices have been cautious capital allocators, favoring steady returns and safe bets. Today’s forward-thinking family offices, however, realize they hold more than just monetary wealth. They bring deep industry knowledge, operational expertise, established supply chains, and a valuable brand aura—factors that can turbocharge startup creation. Instead of simply hoping for strong returns, they become active architects of innovation, building companies that can transform entire sectors.
Beyond Passive Investing: Building, Not Just Backing
Venture-building platforms and venture studios offer a blueprint for this new approach. Here, the family office isn’t just an LP; it’s a co-creator. By combining internal expertise with entrepreneurial talent, each new venture is crafted with a clear vision: solve real problems faced by the FO’s industry, leverage untapped market opportunities, and position the resulting companies for rapid scale. This dynamic goes beyond the typical investor-investee relationship. It’s about co-invention—shaping business models, influencing product development, and strategically placing startups where they’ll thrive.
Leveraging Strategic Assets as Incubation Engines
One of the family office’s biggest advantages is its strategic position. Whether it’s a century-old name in manufacturing, a vast global distribution network, or proprietary R&D facilities, these assets can be repurposed as innovation engines. By embedding them within a venture studio framework, the FO can ensure that each startup begins with an unfair advantage—access to real customers, technical expertise, and immediate credibility. This isn’t theoretical synergy; it’s a tangible head start.
The “King-Maker” Mindset: Monetizing Innovations
Even to Competitors Perhaps the most intriguing aspect of this strategy is the potential to create startups that serve an entire industry, not just the FO’s own ecosystem. By incubating ventures that address widespread sector challenges, family offices can later monetize these innovations to industry peers and even direct competitors. Why would a family office effectively “arm” their rivals? Because the FO continues to profit from every sale and partnership. It’s a new kind of virtuous cycle, where strengthening the entire market, paradoxically, strengthens the FO’s long-term position—and balance sheet.
A Real-World Example: LEGO / Kirkbi
Consider the Kirk Kristiansen family, owners of the LEGO Group. They’ve channeled their family office’s legacy and assets into KirkBi , which acts much like a venture studio, incubating and investing in early-stage companies that can extend LEGO’s influence in education, creativity, and learning-through-play.
LEGO Ventures doesn’t just invest passively; it partners with founders to shape concepts from day one. Founders gain a wealth of advantages: global brand recognition, immediate trust from potential partners and customers, and streamlined paths into new markets. This active involvement ensures that each startup is crafted with LEGO’s strategic vision in mind—meaning that when these ventures launch, they’re positioned to become industry trendsetters, not just another seed-stage company hoping to break through the noise.
The kicker? Some of these LEGO Ventures–backed startups may eventually become valuable even to LEGO’s competitors or companies in adjacent sectors. By selling equity, licensing IP, or forging strategic partnerships, LEGO Ventures turns its position as a market influencer into a long-term growth engine. It is, in essence, “king-making”: empowering startups that raise the bar for everyone else—and profiting from that uplift.
Other Family Offices Following Suit While LEGO Ventures is a high-profile example, there are others. The Pritzker family leverages its operational prowess and network through Pritzker Group Venture Capital, helping shape promising tech companies. Emerson Collective (Laurene Powell Jobs) supports mission-driven ventures from education to healthcare, providing not just capital but also strategic resources. S2G Ventures (backed by the Walton family) nurtures agrifood and environmental startups, offering more than just money—industry connections and strategic insights that can make or break an early-stage venture.
The Long-Term Payoff: Influence, Legacy, and Returns
For family offices that think in terms of generations rather than quarters, the benefits extend far beyond financial upside. By co-creating new ventures, they sculpt the narrative of their industries and leave a lasting legacy. They aren’t just investors in tomorrow’s technologies—they are the architects of tomorrow’s markets.
Meanwhile, the returns can be substantial. By owning a larger stake in a venture that breaks big, or by orchestrating multiple successful spin-outs, family offices can see outsized gains compared to traditional VC bets. And if those ventures are sold—even to competitors—the family office still wins financially and strategically, having become a recognized force in shaping the entire sector’s future.
Lets build together!
Amish Patel, Founder, Managing Director
Conduit Venture Labs , the only full stack hard-tech capable venture building platform!
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