This article is an extract from Transmission Private’s monthly newsletter, The Lede, which tracks the world of reputation management for private clients. You can sign up for the newsletter on our website via the tab at the bottom of this article or by completing the form here.

Good morning. 👋 Welcome to this month’s edition of The Lede, themed on venture capital and family offices. VC is on a tear. More than six in 10 family offices say they will retain or increase their VC allocation this year, according to SVB. And yet, many families (regrettably) fail to take advantage of the big reputational benefits VC could bring to their families. 🚀

Why are family offices entering venture? Lots of reasons. Off the back of the pandemic, many families are looking to diversify their portfolios as well as build more exposure to tech. VC is a fantastic way to do both. Plus, in today’s low-interest-rate environment, the potential for strong returns in VC makes it very attractive.

Is VC good for an individual’s reputation? Yes. Very.

• On one hand, the public thinks more positively of families who are seen to be supporting enterprise, contributing to economic growth, and generating jobs. VC helps families demonstrate all of these traits.
• But, more importantly, the public looks very positively on families who are seen to be disrupting markets with new technology. Research from Transmission Private — set to be published next month — shows that the public thinks most positively of high-net-worth individuals who invest in tech. Technology beats out every other industry. Mining is at the bottom of the pile.

So, how can families take advantage of the reputational gains? Giving considered visibility is key. 🔎 On one hand, this might mean ensuring that the family office’s VC investments are on their website. On the other hand, it might mean ensuring that the family are named in an investment announcement to the press. Ultimately, it is about ensuring that the family’s VC investments are on the public record, whether that is online, in the press, or even in the Annual Report.

But, why don’t families speak more about their VC activity? Sadly, many families focus their public profile on their primary business, which is usually a multi-generational concern. This usually ends up crowding out their VC investments. The family often, understandably, consider their VC investments a marginal part of their overall portfolio, and not worthy of public discussion. This is a mistake and a lost opportunity.

Takeaway... if a family is investing in venture, giving visibility to their investment activity will significantly boost their reputation. 🚀 And yet, many families fail to do just that.