Our special report on alternative investments starts next week, and it will take an in-depth look at the how’s, why’s and where’s of venture capital and family offices. According to PwC, family offices globally are significant backers of early-stage companies, accounting for more than 30 percent of total investment in start-ups. And while the number of deals has declined from its peak in the early 2020s, there are signs that family office venture investment is recovering.
That’s the global landscape, at least. But what is happening in Canada? It’s fair to say that in general, the venture capital environment here has long faced challenges. Despite Canada’s competitive university and research infrastructure, consistent governmental support, an educated (and tech-savvy) population and a high quality of life, early-stage companies have difficulty attracting investors, for reasons that are by now well documented: market size (tiny, when compared with the behemoth to the south), a culture of risk aversion, smaller capital pools, access to specialized talent, and so on.
For family offices, this landscape may present opportunities. Clearly, demand exists from Canadian start-ups and general partners for patient, committed capital, and family offices have both long-term investment horizons and deep pockets. Many also have roots in entrepreneurial companies themselves; taking risks on promising businesses is just what they do, and investing in start-ups is a way to develop a family entrepreneurial legacy. And some, no doubt, are also driven by a commitment to their country or community by fostering innovation and economic prosperity.
As with so many other aspects of Canadian family offices, though, reliable data is scarce. Our 2025 MFO survey found that venture capital was among the alternative asset classes least recommended by multi-family offices to their clients. Yet even while only 44 per cent of MFOs recommended VC, compared with more than 80 per cent for real estate and private equity, that still suggests significant investment. And anecdotally, at least, we know that many single-family offices are keenly interested in backing start-ups.
Hence this month’s special report. Among the stories we’re working on:
- We take the pulse of family-office interest in early-stage investing right now.
- We identify some of the more promising verticals for Canadian start-ups today and in the future.
- We look at the rising trend of “venture philanthropy,” where the principles of VC investing meet social impact.
- At the end of the month, we will be hosting an online panel on venture capital and family offices. Our expert panel will feature Benjamin Bergen, CEO of the Canadian Venture Capital and Private Equity Association; Owen Matthews, chairman at The Alacrity Foundation and managing partner of the Emend Vision Fund, and Prathna Ramesh, partner at the venture studio FutureSight.
As always, ideas and feedback from our readers are welcome. You can forward them to newsroom@canadianfamilyoffices.com.
The Canadian Family Offices newsletter comes out on Sundays and Wednesdays. If you are interested in stories about Canadian enterprising families, family offices and the professionals who work with them, you can sign up for our free newsletter here.
Please visit here to see information about our standards of journalistic excellence.