CampdenFB features Ilian Iliev on co-investment between family offices and VCs in robotics and AI
The rise of robotics and artificial intelligence may seem at odds with multigenerational family businesses but Dr Ilian Iliev, in an article featured by CampdenFB, says a new pragmatism is forging exciting collaborations between the sectors:
Venture Capital firms (VCs) and family-owned business groups are not natural partners. VCs want strong minority rights, an ability to change management if the company underperforms, and do not mind dilution in shareholdings and control if the company’s valuation grows.
By contrast, family-owned business often choose continuity in ownership over a high-risk/high-return strategy, and do not allow outsiders into a business easily. While some of the largest family offices have invested in VC funds as a passive investor, broader links and collaboration between family-owned business groups and VCs were the exception rather than the rule. This is now starting to change.