Family offices are reshaping startup investments in 2024. The best family offices, including names like Maelstrom and Hillspire, are leading this shift. These private investment arms of wealthy families have moved beyond traditional real estate and private equity, embracing cutting-edge fields such as artificial intelligence, blockchain, and biotech. Their strategic investments are not only fueling innovation but also transforming the landscape of venture capital.

Maelstrom: Leading in Blockchain Innovation

Maelstrom, Arthur Hayes's Hong Kong-based family office, tops the list of active family offices in 2024. With 22 investments this year, Maelstrom has focused predominantly on blockchain technology. Its portfolio includes standout companies such as Cytonic, BSX, and Term Labs. This strategic approach highlights Maelstrom’s commitment to decentralization and digital innovation, making it a key player in the blockchain ecosystem.

Motier Ventures: Investing in AI and Fintech

Motier Ventures, led by Guillaume Houzé, has secured its spot as a top investor with 21 investments this year. Its focus on artificial intelligence and fintech has led to significant contributions, such as Holistic AI’s $220 million seed round and Flex AI’s $30 million funding. Motier’s investments span diverse sectors, from AI-driven advertising platforms like Vibe.co to innovative construction tech like Adaptive, showcasing its versatility and forward-thinking strategy.

Credit: CNBC | Motier Ventures, led by Guillaume Houzé, has secured its spot as a top investor with 21 investments in 2024.

Hillspire: Diversifying Across AI and Energy

Hillspire, the family office of former Google CEO Eric Schmidt, continues expanding its AI and energy footprint. Hillspire has participated in high-impact investments, including a $900 million round for Pacific Fusion, a nuclear fusion startup. Its portfolio reflects a strategic understanding of AI’s energy demands, bridging cutting-edge technology with sustainable energy solutions.

Emerson Collective: A Force for Social Innovation

Laurene Powell Jobs’ Emerson Collective combines profit with purpose, focusing on startups that drive social change. Emerson Collective has invested in tech, education, and sustainability-focused startups, reflecting its broader mission of creating a positive societal impact. This balance of innovation and responsibility makes Emerson Collective a standout family office in 2024.

Thiel Capital: Betting on Unique Opportunities

Thiel Capital, founded by Peter Thiel, is known for its strategic bets on unconventional ventures. Recent investments include Fantasy Chess, a platform founded by chess champion Magnus Carlsen, and Rhea Fertility, which focuses on fertility clinic roll-ups. Thiel Capital’s diverse portfolio demonstrates its ability to identify and support disruptive innovations across sectors.

Aglaé Ventures: Advancing AI Innovation

Aglaé Ventures, the tech venture arm of Bernard Arnault’s family office, has made significant AI investments in 2024. Its focus on transformative technologies underscores its vision of reshaping industries through innovation. By leveraging its expertise and resources, Aglaé Ventures continues to be a frontrunner in the family office space.

Business AM | MSN | Aglaé Ventures, the tech venture arm of Bernard Arnault’s family office, has made significant AI investments in 2024.

Co-Investing: A Shared Path to Success

Many family offices, including Hillspire and Thiel Capital, are embracing co-investing to share expertise and reduce risks. This approach allows them to partner with venture capital funds, ensuring access to lucrative deals while benefiting from lower fees. Smaller family offices, which may lack dedicated resources, particularly benefit from this model, gaining insights and support from experienced managers.

Overcoming Challenges in Tech Investments

Despite their success, family offices face hurdles in tech investing. Declining valuations and limited liquidity options have locked up capital for many offices. To navigate these challenges, experts recommend aligning with experienced venture capital funds or investment managers. This collaborative approach helps mitigate risks and ensures disciplined decision-making in an ever-evolving market.