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The new competition for your cap table | Equity Podcast

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…

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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.

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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The Need for Applied AI Experience is Real…and a Market Opportunity

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The market has a need for applied AI experience…and that’s an opportunity for generalists to join the limited ranks of those experts and prosper.

That’s one of the many bets fueling Ode by Anthropic, a joint venture we explored in the latest episode of our Equity podcast. Listen in via your pod player of choice!

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Ode with Anthropic, a joint venture launched by the AI company and other investors, is betting a handful of engineers can do the work of an army of consultants. And a big reason if their belief now is the best time yet to become an entrepreneur.

Listen in on their full interview on our Equity podcast.

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What’s at the top of your wishlist for the upcoming Galaxy Watches? 👀👇

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