Savvy Sparrow's Guide to Startup Booty: Family Offices vs. Venture Buccaneers

Why Family Offices Be Savvier Than a One Legged Pirate

Ahoy maties! Captain Jack Sparrow here reporting live from the rum soaked decks of the investing world. Seems these family offices aye the kind with coffers deeper than the Mariana Trench are making waves in the startup seas. David Adelman a name whispered with the same reverence as 'treasure' in these circles claims family offices got a competitive edge over those venture capital scalawags. Apparently having more gold than Davy Jones himself allows for a patient approach. As I always say "The problem is not the problem. The problem is your attitude about the problem." And family offices they got the attitude of someone who’s got all the time in the world… and all the gold.

Fair Weather Venture Funds? I Think Not!

Adelman that wily dog also says that those venture funds are all sunshine and rainbows until the Kraken attacks. But when the storm clouds gather they abandon ship faster than you can say 'Jack Sparrow!' Family offices however stick around like barnacles on the Flying Dutchman offering lifelines when those startups are drowning in debt. This reminds me of the time I was promised a ship only to find out it was a rowboat. Point is promises are like pie crusts – easily made easily broken. Family offices offer stability unlike a certain pirate captain I know...

A Pirate's Tale: Avoiding the 'Friend of a Friend' Curse

Now before you start picturing yourself swimming in startup doubloons heed my warning. Adelman himself admits to some early missteps investing in ventures pitched by 'friends of friends.' Sounds like trusting Barbossa with your rum doesn’t it? A fool's errand I tell you! That's why he started Darco to bring some order to the chaos. As I always say "Close your eyes and pretend it's all a bad dream. That's how I get by." Though in this case maybe open your eyes and do some actual research.

More Than Just Gold: What Makes a Startup Worth Plundering?

Adelman bless his heart has a few rules of his own. First understand the business. I for one understand rum. That's why I drink it. Second bet on the jockeys not the horses. Meaning invest in the founders not just the idea. If they're honest and ethical they're worth backing even if the venture fails. And third look for a social impact! Save the turtles save the rum... wait that's not right. But you get the picture. It’s about making a difference not just a profit. Though profit is good too.

Synergy? More Like Shenanigans But Smart Shenanigans

Adelman also likes companies that play well with his other toys. Got a student housing empire? Invest in brands those students like. Own sports teams? Invest in spirits to sell at the games! It's all connected like the threads of a pirate's tall tale. He's using his vast network to benefit all his ventures. It's a grand scheme worthy of... well me.

To Family Office or Not to Family Office: That Be the Question

Finally Adelman offers some sage advice: before you build your own family office ask yourself if you really need one. There are plenty of firms out there that can handle your gold. Sometimes renting is better than buying. Unless of course you’re talking about ships. Always buy the ship. Especially if it's the Black Pearl. Now if you'll excuse me I have a compass to follow and a bottle to empty. Savvy?