Family offices, the private investment arms of ultra-wealthy families, have emerged as a major force in the world of venture capital, with many making significant investments in startups across diverse sectors. A recent analysis by CNBC and Fintrx revealed that the top 10 family offices made over 150 startup investments in 2024 alone, with a focus on high-growth industries like biotechnology, energy, artificial intelligence (AI), and blockchain.

Leading the pack is Maelstrom, a Hong Kong-based family office founded by Arthur Hayes, the co-founder of BitMEX, a well-known crypto exchange. Maelstrom stands out for its commitment to blockchain technology, with investments in 22 private startups this year, making it the most active family office in the 2024 analysis. Some of its notable investments include Cytonic, Magma, and Infinit, all companies operating in the blockchain and crypto space. This reflects the growing prominence of blockchain technology in the family office investment strategy.

Another significant player is Motier Ventures, the family office of Guillaume Houzé, a member of the influential French family behind Galeries Lafayette. Since its founding in 2021, Motier has made 21 investments, with a particular focus on AI and blockchain. One of its key investments was in the French generative AI startup Holistic AI, which secured a $220 million seed funding round, highlighting the growing interest in AI technologies.

Not far behind are other major family offices, including Atinum Investment, Hillspire, and Emerson Collective. Atinum, based in Seoul, South Korea, has invested heavily in software and AI startups, while Hillspire, the family office of former Google CEO Eric Schmidt, has made substantial investments in energy and AI. Hillspire was involved in a $900 million funding round for Pacific Fusion, a nuclear fusion startup, underscoring the growing convergence between AI and energy sectors. Emerson Collective, led by Laurene Powell Jobs, has also been actively investing in the tech space, with a portfolio that includes several AI-driven ventures.

The growing influence of family offices in the venture capital landscape is not just about financial resources; it’s also about expertise. Many of these family offices are built around sophisticated teams of tech experts and dealmakers who provide hands-on support to the startups they invest in. This trend has led to a rise in "co-investing" arrangements where family offices partner with experienced venture capital (VC) firms to share risk and access better deals. For smaller family offices, such partnerships have become increasingly important, allowing them to take part in high-potential investments without needing to build full-time teams of their own.

The shift towards direct investments in startups by family offices marks a departure from the traditional model where wealthy families typically invested through VC funds. According to the UBS Global Family Office Report, more than three-quarters of family offices now plan to invest in AI in the next two to three years, making it the most favored investment category. This trend is expected to continue as AI technologies become more integral to business operations and innovation.

While family offices have become key players in the venture capital space, their increased involvement is not without risks. The volatility in the stock market, coupled with a slowdown in IPOs and mergers, has led to a rise in paper losses, especially for those investing heavily in private tech companies. Some family offices may have overextended themselves in their pursuit of high returns, according to experts in the field. For smaller family offices, the best approach may be to collaborate with experienced managers or venture funds, who can provide the necessary expertise and diligence to navigate the complex startup landscape.

As family offices continue to shape the future of venture capital, their growing influence in areas like AI, blockchain, and energy presents new opportunities for startups and investors alike. With a focus on high-growth sectors and innovative technologies, family offices are poised to play a pivotal role in the next wave of startup success.

CNBC