Why private wealth is cutting out the VC middleman

About this episode

The episode discusses the trend of private wealth cutting out venture capitalists and going direct to invest in startups.

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: How Arena landed the lead on Positron's $230 million Series B, and why the CEO specifically wanted them on his cap table How Arena does due diligence on technical companies What "tourist capital" actually looks like, and the red flags founders should watch for as family offices flood into AI deals 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…

People in this episode

Host: Rebecca Bellan

Guests: Mitch Stein, Ari Schottenstein

Topics covered

• private wealth
• venture capital
• family offices
• AI investment
• due diligence

Keywords

• direct investments
• cap tables
• AI chip startup
• Positron
• tourist capital

Mentioned in this episode

Products: AI chip

Places: Midwest

More episodes of Equity

• The SpaceX IPO has finally arrived · June 12, 2026 · 20 min
• It’s hot IPO summer, and the MANGOS are ripe · June 12, 2026 · 34 min
• Andrew Yang on Noble Mobile, UBI, and why he's done waiting for policy to catch up · June 10, 2026 · 29 min
• The 'together tech' wave might be the most intriguing startup bet of 2026 · June 5, 2026 · 34 min
• Every defense startup wants to be the next Anduril. Here's what one of its earliest backers is looking for now. · June 3, 2026 · 39 min
• Does your CEO have AI psychosis? Aaron Levie thinks most of them do. · May 29, 2026 · 38 min