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The VC middleman is getting cut out faster than anyone expected. Family offices and private wealth firms are going direct: writing checks, taking board seats, even incubating companies from scratch. And more founders are starting to notice. In February alone, family offices made 41 direct investments, including one Midwest-based firm that led a $230 million Series B into an AI chip startup.
On this episode of TechCrunch's Equity podcast, Rebecca Bellan caught up with Mitch Stein and Ari Schottenstein, founder and head of alternatives at ARENA Private Wealth, to find out what this shift means for founders, cap tables, and the future of AI investment.
Listen to the full episode to hear:
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How Arena landed the lead on Positron's $230 million Series B, and why the CEO specifically wanted them on his cap table
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How Arena does due diligence on technical companies
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What "tourist capital" actually looks like, and the red flags founders should watch for as family offices flood into AI deals
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Why some VCs are quietly unhappy about this trend (and why Arena thinks that's their problem)
Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
Chapters:
00:00 Intro
03:13 Why family offices are going direct now
06:03 The gen 2 & gen 3 family office shift
07:22 Is this strategic or just AI FOMO?
10:17 How Arena got into the Positron deal
14:30 Why founders want private wealth on their cap table
18:31 Due diligence on technical companies
21:56 Red flags founders should watch for
25:04 Are VCs threatened by this trend?
27:47 Taking board seats & level of involvement
34:17 Outro
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