Family offices bet bigger on start-ups, opt for direct investments

Direct investment or co-investing with Indian VC/PE funds in companies is increasingly catching up

Till recently, most Indian family offices tended to invest in start-ups indirectly by putting their money in venture capital (VC)/private equity (PE) funds. That’s been changing since 2019, with family offices increasingly investing in companies via direct stakes or as co-investors with Indian-headquartered VC/PE funds.
 
The total numbers may not be high compared to the total investment being made by the Indian funds, but the pace is picking up (see table, “The family way”). Data based on investments made by active Indian family offices (which make at least three to four deals a year) in Indian companies hit a