Navigating the Shifting Landscape of Family Office Investments

In the world of high-net-worth investors, August 2025 proved to be a month of steady deal-making for family offices, despite ongoing tariff anxieties that have cast a shadow over investment strategies. According to exclusive data from Fintrx, family offices made 47 direct investments in various companies, a slight decrease from July’s 48. However, the year-over-year comparison reveals a stark decline of nearly 50%, indicating a cautious approach among ultra-wealthy investors.

Despite these challenges, notable family offices of some of the wealthiest individuals have been actively participating in significant funding rounds. For instance, the firms of former Google CEO Eric Schmidt, hedge fund billionaire Stanley Druckenmiller, and philanthropist Laurene Powell Jobs collectively contributed to an impressive $863 million fundraise for Commonwealth Fusion Systems, a startup focused on nuclear fusion technology. Bill Gates’ venture capital firm, Gates Frontier, also joined the Series B2 funding round for this innovative energy company.

The interest in nuclear energy is particularly noteworthy, as family offices look to invest in sectors poised to benefit from the anticipated artificial intelligence boom, which is expected to require substantial power resources. In another significant move, Powell Jobs’ Emerson Collective participated in a $314 million fundraise for FieldAI, a robotics startup that specializes in enabling robots to learn and navigate complex physical environments such as construction sites. Jeff Bezos’ family office co-led this funding round, underscoring the growing intersection of robotics and AI.

In addition to energy and robotics, defense technology has emerged as a hotbed for investment among family offices. Silicon Valley billionaire Peter Thiel, known for his strategic investments in defense tech, joined a $62 million fundraise for Stark, a German developer of weaponized drones. Thiel’s family office, Thiel Capital, has a history of supporting defense startups, including Quantum Systems and Anduril, the latter co-founded by Palmer Luckey. His perspective on AI, articulated in a 2019 New York Times op-ed, emphasizes its military applications, which have garnered renewed interest from deep-pocketed investors amid global geopolitical tensions.

This shift in investment strategy is further evidenced by the increasing popularity of defense technology startups. Once overlooked by investors favoring environmental, social, and governance (ESG) criteria, defense assets have surged in appeal due to rising geopolitical uncertainties and increased defense spending commitments from countries like Germany and others in the European Union. In June, Spotify founder Daniel Ek’s venture firm led a €600 million ($698.96 million) funding round for Helsing, a Munich-based defense tech company. Furthermore, the holding company of the billionaire family behind Volkswagen and Porsche is actively seeking co-investors for a new VC fund dedicated to European defense startups, signaling a robust interest in this sector.

The second quarter of 2025 saw venture capital investment in defense technology reach an astounding $19.1 billion, marking a remarkable 200% increase from the previous year, according to PitchBook. This surge reflects a broader trend among family offices to diversify their portfolios and capitalize on emerging technologies that address contemporary challenges, including energy sustainability and national security.

As family offices navigate these turbulent waters, their investment choices will likely continue to evolve, balancing traditional sectors with innovative technologies that promise to shape the future. The ongoing dialogue around defense, energy, and AI will undoubtedly influence the investment landscape, making it an exciting time for both investors and entrepreneurs alike.