By Jennifer Matthews
- Jeff Bezos’ family office backed five AI startups in June alone, including a $12B round for Prometheus, now valued at $41B
- Black founders received just 0.32% of U.S. venture funding last year, and family office dealmaking runs through networks they were never invited into
Amazon (AMZN -0.70%) founder Jeff Bezos had one busy month in June. His family office, Bezos Expeditions, the private investment firm that manages the Amazon founder’s personal fortune, made five direct investments in AI startups in a single month, accounting for 10% of all family office dealmaking, per Fintrx. The largest was a $12 billion round for Prometheus, the “artificial general engineer” startup he co-CEOs, now valued at $41 billion. Meanwhile, Black founders have raised $643 million all year, their strongest stretch since 2022, and still a rounding error next to what one family office moved in one month.
Why This Matters: Quick primer on how this game works. Startups don’t grow on revenue alone, they raise money by selling ownership stakes to investors, usually venture capital firms. Whoever writes those checks decides which ideas get built, which founders get the funding, and which communities share in the wealth when a company takes off.
Last year, Black founders received 0.32% of U.S. venture dollars. Literally 32 cents out of every $100 invested, which is down from $1.50 at the peak of 2021. The aforementioned year was back when companies were intentional about addressing the wealth gap and racial reckoning pledges were still fresh.
Much like AI, I’ve spent several years building in Web3, an industry that swore it was permissionless, meaning no gatekeepers and no insider referrals required. Build, and the capital would find you; however, it didn’t work that way. The biggest checks still went to founders already wired into Silicon Valley, and funding for everyone else disappeared the moment diversity stopped being a buzzword. AI is running the same play with bigger numbers and fewer apologies.
Family offices raise the stakes because of who they answer to: nobody. Traditional venture firms invest other people’s money, from pension funds, endowments, and institutions called limited partners, who can demand reports and accountability. A family office invests one billionaire’s money and owes explanations to no one. CNBC reported that earlier this year family offices made 41 direct investments, nearly all in AI-related firms. If your network doesn’t include billionaires, you never even get the meeting.
Situational Awareness: Watch whether this year’s uptick holds. SambaNova’s $350 million raise did most of the heavy lifting, and a few big deals don’t make a trend. SambaNova’s $350 million raise, led by billionaire Robert F. Smith’s Vista Equity Partners, did most of the heavy lifting and a few big deals don’t make a trend. Family offices publish no diversity reports, which is exactly why the questions still need to be asked. Access to AI isn’t the same as equity in it. Own what you build.
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