Private investment firms for ultra-wealthy families significantly reduced their direct investment activity in April, likely in response to economic uncertainty and concerns over tariffs. Single-family offices made just 40 direct investments during the month, marking a 31% decline from March and a 47% drop compared to April of the previous year, based on data from a private wealth intelligence platform.
Despite the broader downturn in deal-making, artificial intelligence remains a major draw for these investors. AI-related startups accounted for roughly half of April’s direct deals, showing that family offices still find value in deep-tech opportunities. One of the most notable transactions involved SandboxAQ, a Palo Alto-based company that uses artificial intelligence and quantum technology to serve industries such as drug discovery, financial modeling, cybersecurity, and navigation.
SandboxAQ completed a $450 million Series E fundraising round in early April after increasing its initial target twice due to strong investor interest. This round followed a $300 million raise in December from a range of family offices and high-net-worth individuals, including Salesforce CEO Marc Benioff, venture capitalist Jim Breyer, and Two Sigma co-founder David Siegel. The spring extension of the round brought in another $150 million from investors like Google, Nvidia, and Bridgewater founder Ray Dalio’s family office.
Chaired by former Google CEO Eric Schmidt, the company spun out of Alphabet in 2022 and benefits from the involvement of technically skilled investors. CEO Jack Hidary emphasized the strategic value of these partnerships, noting that many of the involved family offices are led by experienced tech and finance professionals who actively advise the company.
Hidary explained that over the past six or seven years, family offices have become more comfortable investing in deep-tech startups. Traditionally seen as high-risk, these ventures are now viewed as having strong competitive moats and lower commoditization risk compared to consumer tech. According to Hidary, family offices increasingly prefer supporting long-term, high-impact ventures rather than short-term consumer trends.
Some investors, like Jim Breyer, took the time to review technical literature with the founder before investing, while others, such as Ray Dalio, engaged in multi-year discussions before committing capital. Hidary stressed that patience and shared vision are critical, as the company aims to become a leading global player in deep tech—a path not suited to every investor.
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