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 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