FON MARKETPLACE

An Interview with Family Office Networks CEO & Founder Andrew Schneider on

FON Marketplace & Future of Fintech

Family Office Networks created FON Marketplace as an online technology platform designed for family offices to access private deals and connect with other family offices to co-invest; research luxury goods and services; share philanthropic ideas; and more. It was created to streamline the process of investing in a private placement which today is still an antiquated system. We’re using a proprietary algorithm that enables family offices to easily identify the best opportunities. Family Office Networks CEO & Founder Andrew Schneider shares his insights on the innovative platform and the future of the fintech industry. What is FON Marketplace?

During the 20 years I have been working with family offices, a common complaint is lack of access to good deal flow, alternative investments, and other services families traditionally seek. Many family offices have accounts at the biggest banks which may be too big to take advantage of the best private deals. FON Marketplace is a digital platform that provides family offices the ability to connect with other families through co-investments, educational events, philanthropy and luxury products and services.

FON Marketplace was initially designed for only family offices that had their own deals and were looking for a few family offices to co-invest; however, as demand for our distribution grew exponentially, we decided to open the platform and allow other qualified issuers to list their offering. FON Marketplace is the largest platform of private placements consisting of hedge funds, venture capital funds, private equity, direct deals, PIPES, and anything that falls under the definition of a private placement.

FON Marketplace is a digital platform that provides family offices the ability to connect with other families through co-investments, educational events, philanthropy and luxury products and services.

FON Marketplace includes:

Family Offices – 15,000+ single and multi-family offices with $50-500M net worth, plus 60,000+ UHNW investors Issuers - Hedge funds, private equity, venture capital, real estate, blockchain, RIAs, private and public companies

Service providers – Legal, accounting/tax, cost segregation, fund administration

Luxury – Yachts, private aviation, luxury cars, art, jewelry, butler services and luxury experiences

Philanthropy – Charities and family foundations

When did you launch luxury products on FON Marketplace?

That is a great question. I saw that family offices are the biggest consumers for luxury products and services such as private aviation, yachts, art, collectibles, fashion, vacation homes, etc. With this in mind, we rolled out a luxury newsletter four years ago that received a tremendously favorable response. The reason we added luxury to FON Marketplace is to help drive more traffic and quality families. In addition, with today’s global macro conditions we have seen changes to almost all the major events, conferences and shows. If you are looking to buy, sell or rent any luxury products we are the most efficient way. Who is the audience for FON Marketplace?

We currently have over 200,000 members and about 15,000 family offices both domestic and global. We reach the top four percent of the global population in terms of income with an audience that has a median age of 54, including 72 percent male and 28 percent female. The average family office is between $50 million-$500 million net worth. The average age is going down as more and more people are making bigger decisions online - especially our children and grandchildren.

If I am a company trying to raise money, what are the benefits?

Any company seeking to work with family offices realizes that they are often difficult to reach. FON Marketplace is a forum to get those companies in front of key family office decision makers who are dedicated to best in class relationships. By utilizing technology, FON Marketplace makes it easy for family offices to conduct due diligence and share recommendations with their like-minded peers. Legal services, administrators, accountants and marketing experts that specifically deal with family offices are in high demand. By listing your business with us, you will place your company directly in front of the right target audience at a cost of $5,000 a month. How exactly does it work and how can I search for the best prospects?

FON Marketplace is easy to navigate. The “View Listings” tab enables users to access lists of family offices and high net worth investors. These contacts can be sorted by geography, total and liquid net worth, age, investment interests, yacht & aircraft ownership, and more. There’s a total of 15,000+ single and multifamily offices with $50-500M net worth, plus 60,000+ UHNW investors listed. Issuers on the site include hedge funds, private equity, venture capital, real estate, blockchain, RIAs, private and public companies. Service providers include legal, accounting/ tax, cost segregation, fund administration. We also feature yachts, private aviation, luxury cars, art, jewelry, butler services, luxury experiences, charities and family foundations.

What are the costs to list my company on FON Marketplace vs. buying a membership?

A bronze membership on FON Marketplace is a three-month commitment at a total of $15,000 and after that it is a month to month membership. Most new deals that get listed will get the majority of the exposure in the first three months. A membership provides the same benefits plus webinars. The benefits are tremendous on this new world that is forming. It is evident that big conferences will not be a factor in the near term. Companies get a lot of exposure with all the family offices that use the site. In addition, they are featured in our weekly newsletter and also can search through our database of thousands of family offices and contact them directly. In light of what has gone on with the coronavirus how do you feel about the future for Fintech?

I feel that the industry was already moving further away from traditional wealth management and our ability to make changes and adapt to situations like this will really help companies like ours to grow tremendously as the demand for good deal flow continues to grow. As travel will be more inconvenient, more and more companies looking to raise money will be doing so online. How can family offices benefit from accessing FON Marketplace?

Family offices can utilize the new technology in several important ways. The platform simplifies the investment process by enabling users to filter transactions by key parameters such as size, industry and geography. They can also take advantage of joining the Family Office Investment Clubs, spread out the cost of due diligence, access to deal flow and access to educational and informative events and much more.

In addition, it is a great way to buy, sell and/or rent luxury goods and services and learn what they have to offer to families in our network. Family offices will also be able to share philanthropic ideas and thought leadership on FON Marketplace, and we will continually be adding new features and capabilities.

I’m seeking to raise $25 million in the next three to six months for my company. Can FON Marketplace help?

Absolutely. By listing your offering on FON Marketplace you will benefit from our proprietary technology that is based on an algorithm designed to get the listing in front of as many qualified family offices as possible which have expressed interest in that strategy or space. Due to our extensive network of relationships, we’re a very cost efficient way to market your product to the family office community. FON Marketplace lists alternative investment offerings in private equity, hedge funds, real estate, direct, sponsored and venture backed transactions. Essentially, FON Marketplace is an easy and efficient way to share ideas on products, deals and other investment opportunities. The overall intent is to streamline the private placement process and get more transactions funded and closed efficiently in an online community that is open almost exclusively to family offices, accredited investors, other brokerdealers and financial advisors with family office clients. Since family offices are able to do due diligence more efficiently and act more quickly than institutional investors, the lead time to get deals done is typically shorter, which issuers appreciate.

FON Marketplace makes it very easy for issuers to reach family offices and other potential allocators in a timely and very costefficient way, especially in light of recent events. I don’t see this as just a change because of the coronavirus since many companies were already seeking a more viable strategy for raising capital. FON Marketplace is positioned to be one of the largest companies catering to the highly sought out family office industry and investor category.

How can luxury products and services benefit from a listing on FON Marketplace?

The FON Marketplace audience is driven to discover new luxury product and service opportunities. In response, we have high level partnerships in place with a select group of luxury companies that our families enjoy, including art, automobiles, private aviation, jewelry, travel, yachts, and more. FON Marketplace is an ideal spot to get the best luxury offerings in front of the right audience in order to boost visibility and sales.

Family offices are the largest consumers of luxury products and services, such as yachts, art, private aviation, collectibles, jewelry and much more. Over the past five years, we have been doing many events at art galleries, polo and other high-end venues that have attracted a lot more family offices than many of our traditional wealth management conferences. In addition to FON Marketplace, we list offerings on our luxury magazine (FONMagazine.com) and weekly luxury newsletter.

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I am a high end real estate broker. Is this a beneficial place for me to reach new clients?

Family offices typically have more than one residence and are always seeking new destinations at which to make family memories. They’re committed to working with brokers who understand the nuances of meeting their very high expectations and often rely on FON’s recommendation when making a decision. In addition to providing an opportunity to meet potential new clients, FON Marketplace is an ideal place to list homes for sale and reach qualified purchasers. Family office typically have the majority of their net worth in real estate or their own business.

I’m debating whether to sell or rent my yacht. How could FON Marketplace help me?

With its strong focus on luxury, FON Marketplace has specific sections/platforms for each type of luxury experience and boating is one important area that’s of keen interest to family offices. FON Marketplace lists options for both renting and selling yachts and also includes trusted vendors who serve the industry such as interior designers, catering, crew staffing, and more. How can non-profits participate in FON Marketplace?

Family offices are dedicated to identifying philanthropic endeavors that are important and life-changing. Many substantial family offices are in the midst of dealing with the largest transfer of wealth between generations that we have ever seen and creating a truly lasting legacy is at the forefront of these crucial decisions. They want to vet potential philanthropic partners and make a difference. For that reason, FON Marketplace lists leading philanthropic causes and provides guidance on how to get involved.

How can anyone interested in FON Marketplace get more details?

If you have an opportunity that is a good fit for the family office community, please visit www.fonmarketplace.com. For information about Family Office Networks, contact Andrew Schneider at andrew@familyofficenetworks.com