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Prominent Investor Publicly Criticizes Biden, Fundraises for Trump, Silicon Valley’s Political Winds Suddenly Change
Change of Stance: From Not Supporting Trump to Fundraising Support
Silicon Valley’s Political Winds Shifting
Democratic Party Still Has Many Venture Capital Giants
Startup Industry Policies Trigger Chemical Change
Tech Backlash and Political Reassessment
Discontent with Tax Proposals and Encryption Policies
Supporting Politicians Driving the Future of Technology
ETH ETF, FIT 21 Bill Passes Quickly
Silicon Valley’s venture capital industry is undergoing a political earthquake. Prominent tech investors such as Marc Andreessen and Chamath Palihapitiya are increasingly publicly criticizing President Biden and expressing support for Trump.
The New York Times reported on this series of political shifts:
In 2021, renowned venture capitalist and host David Sacks stated that former President Trump had lost his qualification to become a future political candidate due to the Capitol Hill riot on January 6. However, Sacks changed his stance at a tech conference last week, claiming that his differences with Biden are greater than with Trump. Mr. Sacks also revealed that he and his podcast co-host are planning a fundraising event for Trump and have extended an invitation to Biden, but the Trump camp is more open to it.
The shift in Silicon Valley’s political winds is particularly noteworthy because the region has long had close ties with the Democratic Party. Supporting Trump openly was once taboo in Silicon Valley, which was considered a liberal stronghold.
However, the growing dissatisfaction with Biden and the Democratic Party is leading some of the most famous tech venture capitalists to lean towards the right. For example, Chamath Palihapitiya of Social Capital, who previously supported the Democratic Party, is now working with Sacks to organize fundraising events for Trump.
Marc Andreessen of Andreessen Horowitz (a16z) and Shaun Maguire of Sequoia Capital have criticized Biden but have not explicitly expressed support for Trump. Keith Rabois of Khosla Ventures is focused on electing Republicans to Congress. While these activities represent only a portion of individuals, their influence cannot be ignored.
In the past, Republican donors in Silicon Valley were limited to a few tech executives such as Scott McNealy, the founder of Sun Microsystems, Meg Whitman, former CEO of eBay, Carly Fiorina, former CEO of HP, Larry Ellison, executive director of Oracle, and Doug Leone, former managing partner of Sequoia Capital. Tech companies like Airbnb, Google, Uber, and Apple have been enthusiastic about hiring members of the Obama administration.
Many Silicon Valley investors, including Reid Hoffman and Vinod Khosla, remain loyal to the Democratic Party, while Peter Thiel, co-founder of PayPal and a former Trump supporter, has expressed disappointment with politics and plans to withdraw from the 2024 campaign.
However, these tech investors who have shifted to the right have a large following on social media and substantial funding, making them increasingly politicized.
According to PitchBook, which tracks startups, the startup industry has grown eightfold from 2012 to 2022, reaching $344 billion, and more industry issues have become politicized. Bobby Franklin of the National Venture Capital Association says that current issues are more complex than ever before.
Peter Thiel’s high-profile support for Trump in 2016, including a $1.25 million donation and a speech at the Republican National Convention, shocked the entire industry. The resulting “tech backlash” caused some industry leaders to reevaluate their political views, a trend that has continued to ferment amidst social and political turmoil during the pandemic.
Some investors express disappointment with the antitrust strategy of Lina Khan, the nominated chair of the Federal Trade Commission, and dissatisfaction with Gary Gensler, the chairman of the Securities and Exchange Commission, regarding his hostile attitude towards cryptocurrency companies.
Since 2022, startups have been in a slump due to rising interest rates and a bleak IPO market. Sacks believes that Biden’s tax proposals, including a 25% billionaire tax on certain holdings, could stifle the development of startups. He stated at last week’s tech conference, “This is a good reason for Silicon Valley to seriously consider their voting choices.”
Marc Andreessen, one of the founders of Andreessen Horowitz, pointed out in a recent podcast, “The Biden administration has real problems.” He believes that under Trump’s administration, the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) would be led by “very different people,” but Trump’s presidency was not necessarily a “clean victory.”
Representatives from the National Venture Capital Association state that Silicon Valley’s dissatisfaction with the current situation reflects a general disappointment with both parties nationwide.
Andreessen Horowitz’s previously mentioned “e/acc” (optimistic view of a technology-driven future) may best express the sentiments of these tech investors. In November of last year, a group of prominent investors and startup founders jointly wrote to Biden, criticizing his executive orders on artificial intelligence and accusing him of stifling innovation.
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What is Vitalik’s proposed “d/acc”? How does it differ from “e/acc” (effective accelerationism)?
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Perhaps due to pressure felt by the Biden administration, unlike the long-anticipated Bitcoin spot ETF, the Ethereum spot ETF was approved by the SEC without any public improvement suggestions. Additionally, the FIT 21 bill, strongly supported by the US cryptocurrency industry, which limits the scope of regulation by the SEC and clearly defines decentralized networks, quickly passed a vote in the House of Representatives and is heading to the Senate for review.
This industry-friendly development stemming from the election will greatly change the industrial development of the United States and the world.
Republican Party
Trump
Biden
Democratic Party
Silicon Valley
Further Reading
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