For decades, high-net-worth individuals have relied on venture capitalists (VCs) to navigate the startup scene. But with artificial intelligence (AI) leading the charge, these investors are now jumping straight onto the cap table, bypassing middlemen.

The shift is clear: companies are staying private longer, and fewer firms are going public. Family offices like Arena Private Wealth are leading direct investments into AI startups, earning board seats in deals such as Positron's $230 million round.

‘The world’s AI infrastructure is being built now,’ says Ari Schottenstein, head of alternatives at Arena. ‘You’re either going to get in early or miss it.’ This urgency reflects a broader trend: 83% of family offices consider AI their top strategic priority over the next five years.

Arena's approach is rigorous and selective. They take time for due diligence, working with third-party experts and scrutinizing cap tables. Their investments are not spread out like typical VC portfolios but concentrated in a handful of high-stakes deals each year.