Equity Why private wealth is cutting out the VC middleman
75 snips
Apr 1, 2026 
Ari Schottenstein, head of alternatives at Arena Private Wealth who sources direct deals; Mitch Stein, Arena founder modernizing private wealth and leading tech investments. They discuss family offices writing direct checks, taking board seats and incubating startups. They explain how Arena led a $230M Series B, how due diligence on technical AI firms works, and what red flags founders should watch for.
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Concentrated Direct Bets Create Strong Founder Alignment
- Arena offers concentrated, aligned capital by doing few single-asset direct deals and taking reputational risk.
- Founders value non-conflicted partners who can be patient or active and commit significant time and resources.
Validate Technical Claims With Paid Expert Reviews
- Do extensive third-party technical due diligence on hardware or highly technical startups rather than relying solely on internal expertise.
- Arena engaged external experts and invested considerable money to validate Positron's technology and market.
Match Investors To Your Company Stage And Needs
- Founders should choose cap table partners based on company stage and complementary value, not just capital.
- Early-stage needs traditional VCs for board expertise; growth-stage can add alternative partners for diversification and fresh networks.