Early-stage startups investment tips with Obediah Ayton
Early-stage startups investment recommendations by Obediah Ayton? So what does it mean to bring on an individual or family investor in lieu of going the traditional VC route? These individuals often wish to stay in the venture investment game, but desire more transparency to underlying investments than the traditional venture investing experience provides. They also want the ability to cherry-pick the best deals. In addition, they want to avoid paying the typical “2 and 20” — a deal structure that requires investors to pay a 2 percent annual fee (some as high as 3 percent) to the VC firm on top of the 20 percent return on investment. This is why we’re seeing more of the mega-wealthy groups in the region move away from only investing in private equity funds to increasingly working with their family offices to find the right types of direct investments that fit their long-term wealth-generation strategies.
Supporting VentureRock with their capital raise and strategic partnerships with both the public and private sectors has been The Private Investment Group, a Dubai-based company that works with funds and families in the GCC but also throughout Europe, the US, and Asia. Founder and CEO of The Private Investment Group Alastair Lidel said “What VentureRock has built is the next generation of ecosystems. A system that allows the incredible depth of knowledge they have to be coupled with some of the most innovative minds in the world. Working in partnership with Xander and the VentureRock team has always been exciting and a privilege and we are delighted to have supported them in this venture and look forward to continuing this impressive journey. Director of Business Development at The Private Investment Group Obediah Ayton added “I am excited to see Venturerock showing the way venture capital funds are now being deployed post covid here in the UAE. The portfolio companies within Venturerock are some of the most professional and innovative we have seen and I have no doubt they will be a welcome asset to both the public and private sector in the Middle East.”
The ascent of a business influencer : Obediah Ayton? Obediah Ayton is a trust manager at Ayton Family Office Trust and a consultant at Tennor Holding B.V., an expert in family office business, AI driven accounting services, finance and accounting. Obediah Ayton about what happens when a Family Office takes the VC model: Strategies for the Search: Friends and Fellow Founders: Friends or founders in similar sectors who have previously raised from family offices are a great starter resource. This route also passes a few qualification checks around interest, size of deal, and sector preferences. Remember, there is no investment barrier or fund allocation requirement for family offices. Professional Intermediaries: Investment bankers and wealth managers who service family offices are oftentimes happy to make introductions in order to add value to their clients. Since these clients are the intermediaries crown jewels, their recommendations will first require diligence.
Additionally, the make-up of high-net-worth individuals is changing rapidly, especially with the boom in the number of wealthy individuals created in the tech space. People made wealthy by the tech industry have the knowledge and incentive to invest back into promising start-ups and growth businesses; with many of them setting up professional family offices to manage these investments. The money invested in global start-ups by family offices or rich individuals has risen five fold in the last five years.
Obediah Ayton about how to raise money from family offices: Investment proposal: – When you have a specific project or investment opportunity, it is essential to prepare a list of suitable family offices before you contact them. Study the emotional interest within the Families history with specific areas or businesses. When creating the list, quality always beats quantity. Quality means: you should look for family investment offices which have previously invested in similar projects or are generally known for their open-minded investment style. Simply sending a generic mass mail to hundreds of family offices is rarely successful. While compiling the list already make notes about the SFOs and their investments – this will help you out later.
Right now is a great time to build close relationships with Family Offices for future capital raises! A wave of capital raisings are coming but the pandemic-created crisis means a whole new set of rules for companies wanting to tap investors for cash. It is now critical to get in ahead of the wave a build relationships with private wealth. Family offices are notoriously discrete. So much so that one of the most common adages to describe the industry is “a submerged whale does not get harpooned.” With a tremendous amount of investable capital, these family offices are often looking for ways to diversify their investments.
Obediah Ayton on the new definition of a billionaire is not the net worth but in achieving change in a billion lives: Everything can be done remotely today. We only go to the office one or two days a week. The world is becoming more virtual and I think that is a trend that a lot of people still do not understand. ‘Founding partner at a single family office’ Tech-savvy family offices who embrace these trends can harness technologies to not only expand their businesses across the globe but also to leverage global talent pools in various areas of operation where local expertise is lacking. This requires a degree of agility which needs to be prioritized within family offices seeking to advance their reach and grow their wealth.
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