Evan J. Renov, Cofounder & Managing Partner at Arieli Group.
The United States has long held its place as the global leader in scientific innovation. From the development of Covid-19 vaccines to nuclear fusion technologies and the emergence of transformative AI platforms, American researchers have consistently delivered breakthroughs that shape the world. Between 2019 and 2024, U.S.-based scientists earned more Nobel Prizes in the sciences than the rest of the world combined.
Fueling that success is a diverse and dynamic ecosystem, one powered in no small part by global talent: Nearly 43% of U.S. STEM doctorate holders were born outside the country. The U.S. was on track to spend $1 trillion on research and development last year, which was more than any other nation. However, U.S. public science funding is facing growing headwinds, including government budget cuts to research dollars, which put this exceptional innovation output at risk.
Amid this uncertainty, private investors, including family offices, private equity, venture capital and high net worth (HNW) individuals, can fill some of the crucial gaps in funding while accessing opportunities to generate meaningful returns.
As a family office that has invested and partnered with universities and licensed academic research for over three decades, I have seen firsthand how early deployment of strategic capital can accelerate science from the lab to the real world. This is especially true during the “death valley” stage of early academic research, where even the most promising breakthroughs face their highest risk of stalling. After public grants are exhausted, there is often a gap before growth-stage investors or industry partners are ready to commit. Private capital can play a decisive role in bridging this gap.
By stepping in at this stage, private investors such as family offices not only help scientific research overcome the death valley, but they can also gain early access to high-potential innovations that may become real-world solutions for unmet critical needs.
Models Of Private Engagement In Academic Research
Academic institutions remain an underutilized source of innovation, and current funding constraints only heighten the need for alternative financing models.
We are already seeing other firms embrace an approach similar to the one our family has been executing on for decades. For example, Lux Capital, a leading venture firm, recently committed $100 million to what it describes as a “helpline” for science as part of a dedicated effort to support university research with future commercial potential.
Another template that may become more broadly adopted by private investors is the $39 million allocation by a private equity firm to finance a biology lab at Harvard University, exemplifying a growing trend of backing research at its earliest stages, not just the startups that spin out later.
These initiatives reflect a broader shift: Private capital is no longer limited to post-discovery commercialization. Instead, investors are becoming direct stakeholders in the innovation pipeline, partnering with academic institutions earlier in the research lifecycle.
Strategies For Family Offices And Other Private Investors
For those looking to enter or expand in this space, the opportunity is clear. Here are several principles to guide a successful approach:
1. Build deep institutional relationships.
Success in academic investing depends on trust and access. Cultivating relationships with technology transfer offices (TTOs) and leading research institutions is essential. These partnerships offer early insight into emerging discoveries and provide a window into which innovations may have the most commercial potential. Collaborating with experienced co-investors can also help navigate the unique dynamics of this space.
2. Diversify beyond passion projects.
It’s natural for investors to be drawn to fields with personal significance, from oncology to neurology or other areas of interest. While mission-driven capital has a role, a well-constructed portfolio should include a range of technologies, development timelines and risk profiles.
Some research areas, such as advanced therapeutics, may require a decade or more of development and regulatory approvals. Others, such as medical devices and diagnostics, may deliver proof points earlier in the process. Blending long-horizon investments with shorter-cycle opportunities can improve capital efficiency while maintaining impact.
3. Identify early signals of success.
Compelling opportunities often exhibit early indicators of traction. These may include proprietary data sets, novel delivery mechanisms, unique intellectual property or proof-of-concept validation. While full commercialization may still be years away, these elements can signal a research team’s capacity to translate science into scalable solutions.
From Capital To Catalyst
Academic research in the United States is at a crossroads. Leading scientists and institutions continue to drive discovery but face growing uncertainty around public funding. For family offices and other long-term private investors, this creates a unique opportunity to partner with world-class researchers, fund critical innovation and potentially shape the next generation of transformative technologies.
The upside isn’t purely financial. Strategic capital deployed today may enable the next major medical discovery, the next leap in diagnostics or the next platform that redefines an industry. Family offices and other private investors have the chance to act as catalysts, moving science forward to build a healthier and more prosperous future.
Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?