Too many investors use pattern-matching or financial models as their main approach, and don’t consider other ways of deploying capital. With AI and technology opportunities changing fast, new approaches are needed. A CEO, author and thought leader addresses the issues.

The following article comes from Jason Ma, founder, chief
executive and chief mentor at ThreeEQ. Ma advises principals
at single family offices (SFOs), ultra-high net worth individuals
and rising Next Gen figures. He discusses technology and AI
investing – topics of obvious relevance right now. The editors
are pleased to share these comments; the usual editorial
disclaimers apply to the views of guest writers. To comment or
provide suggestions and feedback, email tom.burroughes@wealthbriefing.com
and amanda.cheesley@clearviewpublishing.com

Legendary venture capitalist Vinod Khosla recently remarked, in a
conversation with OpenAI CEO Sam Altman, that 90 per cent of
venture capitalists add no value to startups and 70 per cent even
harm them. While some may not fully agree, the comment reflects
truths I have long observed across the entrepreneur–investor
ecosystem from global Silicon Valley.

Khosla’s bluntness might sound provocative, but for those of us
who have spent decades in the trenches of innovation and
entrepreneurship, his critique resonates. Too many investors rely
on pattern-matching or financial models alone, failing to
recognise that early-stage company-building is non-linear, deeply
human and ultimately talent-driven. The best investors elevate,
not inhibit, that process.

In my view, around 90 per cent of a startup’s success stems
from its founders and early key teammates. This underscores the
irreplaceable value of visionary talent, grit and leadership at
the earliest stages – factors that even sophisticated capital
often underestimates. Yet far too many investors miss out on
transformational industry impact and exceptional multiples on
invested capital (MOIC) and return on investment (ROI) potential
because of ego, greed, fear, flawed assumptions or a fixed
mindset – rather than a visionary growth mindset.

Roelof Botha, Sequoia Capital’s managing partner, recently
said: “My biggest mistake as an investor is the failure of
my imagination.”

That line stayed with me. Years ago, Roelof and I served as two
of three judges at a Stanford student entrepreneurship panel. His
reflection reveals how imagination – often dismissed in
traditional investment thinking – is in fact critical when
evaluating frontier opportunities.

In my speaking engagements and business dealings with principals
and chief investment officers of single-family offices (SFOs) and
UHNW private investors, I often highlight a trend: more
entrepreneurial investors are shifting from being passive limited
partners in VC funds to pursuing direct, intelligent investments
in AI and technology ventures – from early stages onwards.

Structural limitations

While many investors still allocate to select established or
emerging VC funds with multiple LPs, the shift towards direct
investing is being driven by clear structural frustrations and
the potential for better returns in shorter timeframes.

Most VC funds underperform relevant benchmarks, restrict
flexibility with seven-to-10-year (or longer) lockups, and charge
management fees regardless of outcomes. They also often follow
the herd – chasing familiar themes, crowded cap tables and
overplayed categories or geographies.

Astute single family-offices and UHNW individuals realise that
they no longer need to accept these limitations. They are
exploring a more dynamic approach: intelligent direct investing
in high-impact ventures, where they can back exceptional founders
directly and retain strategic control.

Smart direct AI/tech investing: a mindset-driven
advantage

This approach is not about writing opportunistic cheques. It is
about SFO principals, CIOs and UHNW individuals who possess the
mindset, skills and network to source and back transformative
ventures – and who understand the nuances of emerging,
high-impact technologies and business models.

Based on what I have observed, smart direct investing offers
strategic advantages unavailable through fund structures:

— Closer relationships with founders and senior
executives;

— Greater alignment with long-term values and personal
objectives;

— More control over deal terms, entry timing and exposure
management; and

— Early access to category-defining innovation while
competitive noise is still low, before the market crowds in.

We are entering a moment when some AI-native companies are not
just reshaping industries – they are creating entirely new
categories. The convergence of compute power, capital efficiency
and global tech talent makes it possible to build billion-dollar
companies with lean teams and clean cap tables faster than ever
before. (A “clean cap table” refers to an organised, accurate and
up-to-date record of a company’s equity ownership, including
founders, employees and investors.)

For entrepreneurial investors who can navigate this landscape
with discernment and vision, this represents a generational
opportunity – not just to earn, but to build and help shape the
future.

And the upside? Returns of 100x to several hundred times in
multiples on invested capital (MOIC) – or even higher in
exceptional cases – are realistic for those wise enough to
attract and invest in the right top deals, some of which may
still be pre-revenue yet category-defining.

I believe that high-margin growth and high-MOIC opportunities are
especially found in impactful, well-executed and new categories
within Applied AI – part of the broader AI solution stack and
ecosystem, which also encompasses enabling layers such as Edge
AI, Cloud AI, and the underlying compute infrastructure including
GPUs and data centres. These are precisely the kinds of
opportunities that some traditional VC firms, institutional
family offices and gatekeepers often overlook – or dismiss too
early.

Fixed mindset vs visionary growth mindset

Despite this window of opportunity, I continue to be surprised –
if not shocked – by how common fixed mindsets and linear (and
often small) thinking still are, even among experienced
investors. These manifest as rigid thought patterns, fear of
uncertainty or overdependence on outdated validation metrics.

In contrast, a visionary growth mindset is marked by humility,
curiosity, strategic imagination and adaptability. These
qualities are rare but essential – both in founders and
investors.

I have coached high-achieving students, leaders and entrepreneurs
one-to-one. For example, one such young leader went on to
identify a promising AI venture opportunity. Most institutional
investors passed – focused on benchmarks or the lack of
comparables. But the founder kept building. Within a few years,
his still-private company became a unicorn and one of the two
most recognised in its category. That is what imagination and
resilience can achieve. I would not be surprised if the company
is acquired for billions soon.

Having served as a mentor at the Thiel Fellowship – which has
supported young adult founders and produced multiple
centimillionaires and billionaires – I have learned to recognise
these intangibles early. And I have seen how the right capital,
paired with the right mindset and skillsets, unlocks non-linear
or exponential outcomes.

From passive allocators to strategic
co-builders

The smart direct investor does not merely allocate capital. They
build relationships, support founders and contribute to value
creation – both tangibly and intangibly.

Some of the most astute SFOs I know are actively evolving from
passive LPs into strategic co-builders. They are:

— Investing with patient capital, conviction and clarity of
purpose;

— Collaborating with peers, operators and trusted advisors
to source proprietary opportunities;

— Focusing on fewer, higher-quality deals with founders
capable of driving meaningful impact – and generating exponential
upside; and

— Mentoring Next Gen heirs and leaders to think critically,
act boldly and lead wisely.

This approach requires time, discernment and courage – but the
upside is not measured solely in outsized returns. It is measured
in influence, legacy and contribution.

Smart, strategic and human

Too many family offices remain held back by structures and habits
designed for a different era. For those with the wisdom to lead
or act rather than to just follow, smart direct AI/tech investing
presents a timely and transformative opportunity to rethink what
wealth – and influence – can mean in this decade and beyond.

It is not about chasing shiny trends. It is about thoughtful
engagement – investing in impactful solutions to real problems,
backing extraordinary talent, generating outsized returns and
bringing a human dimension to innovation.

If this perspective resonates – whether you are an SFO principal,
CIO, UHNW investor or someone who thoughtfully advises them – I
would welcome a private, nuanced conversation.