PITCH Investors Live Reached Out To Family Offices To Onboard More Investors
At PITCH Investors Live, we do our best to serve our entrepreneurs and investors equally. One way, we are growing our investor user base is by contacting family offices.
I met with Arthur Bavelas from Family Office Insights in New York City this week to gather greater insight on investment preferences and the pitching process.
“We have capital to deploy and we first and foremost review the pitch deck,” says Bavelas, who sat down for an interview at the 1 Central Park Hotel in Midtown Manhattan. “We look at the team, the go-to-market strategy, and our return on investment.”
Not all investors are made equal. His family office looks at the following principles to determine whether companies are investment ready:
#1 — Understand your stakeholders — which includes multiple generations of family, spouses, ex-spouses, and possibly even employees, staff, and the circle of advisors. Each stakeholder has their own agenda and expectations that come with their perspectives, values, and biases.
#2 — Know yourself as the investment advocate. Be ready to explain the merits and share your vision which should be balanced between fact and fiction. Pitching takes courage, practice, and discipline.
#3 — Prepare a financial management plan for developing strategies and tactics that address stakeholders’ interests. This plan will prepare for contingencies and allow you to structure a logical framework for diffusing emotion.
#4 — Sleep on it. Allow for some time to think before you make sound investments. The saying that something is “too good to be true”, is a cardinal rule to remember, which goes hand in hand with the rule that states “it is easier to hold on to your money than it is to recover from a loss”.
#5 — Don’t lose money. Let’s say you exit your $100,000 investment at a loss of $10,000. To recover your loss, you may think you need to realise a 10% annual rate of return. However, this calculation does not consider two essential variables: time and rate of return. After the 10% loss, you are left with $90,000. A 10% rate of return would yield just $9,000, still leaving you $1,000 short of full recovery.
#6 — Understand the possibility of things going wrong. Determine what could go wrong before considering the benefits an investment has to offer. This also includes calculating the full range of costs involved.
#7 — Consider the best strategies for adapting to changing environments. Relationships, loyalties, markets, and laws change over time. Be ready for the changes.
As his family office continues to curate a like-minded investor community that seeks to help, protect, expand, and nurture wealth, he is excited about blockchain tech and is looking for recommendations. He concludes by saying, “[the] blockchain sector is very interesting” and jokes, “we don’t take any success fees.”
Before you follow-up with Arthur Bavelas, please have your pitch deck ready. To book pitch events at the family offices, please contact Alice at alice@pitch.ventures
Written by Alice Hlidkova
About Arthur Bavelas.
As an entrepreneur, author, and family office investor, Arthur Bavelas is a pioneer in developing one of the first private opportunity peer review networks for investors within the family office community.
He founded Family Office Insights in 1998 to provide meaningful access and engagement for active, socially conscious entrepreneurs and wealth managers.
Mr. Bavelas draws upon his own experience founding, building and exiting a successful technology startup to evaluate opportunities spanning technology, market access, and impact investing.
He frequently speaks about wealth preservation and legacy investing. His written work has been published in The Wall Street, Bloomberg, and Investment Adviso
Family Office Website.
