Trump won again, gaining support from Silicon Valley's top venture capitalists with $56 billion in investments

Source: North American Business News

Recent news shows that on Wednesday, Ben Horowitz, co-founder of the large American private venture capital firm Andreessen Horowitz, announced on a podcast that he, along with co-founder Marc Andreessen, will invest millions of dollars to support Trump's presidential campaign and his newly announced running mate, Senator JD Vance.

It is noteworthy that JD Vance's career began in venture capital, having worked at Peter Thiel's Mithril Capital and Steve Case's Revolution.

Horowitz and Andreessen are the latest and most prominent members of the American venture capital community to publicly support Trump. So far, many individuals in Silicon Valley have openly supported Trump, including conservative provocateur Peter Thiel, the combative host of the All-In podcast, and Palantir co-founder Joe Lonsdale.

Of course, there is also Elon Musk, who, according to media reports, has not hidden his disdain for President Joe Biden and has pledged to donate $45 million per month to a new super PAC aligned with Trump.

According to interviews with more than a dozen startup investors in the Bay Area and New York, some venture capitalists believe that choosing Vance as a running mate indicates that Trump's second administration will take a more tech-friendly stance.

"I think there are more and more people in Silicon Valley willing to support Trump now," said one startup investor. "With the involvement of high-profile individuals, more will follow. The 'Make America Great Again' venture capital firm has a large asset management scale, so it is influential in our ecosystem."

Andreessen Horowitz controls over $56 billion in assets, and its name is almost synonymous with startup culture. His latest statement may trigger a rush among the venture capital community to support Trump.

"If someone is already a Trump supporter and is worried about being sidelined in the future, this will indeed benefit them," said the head of a venture capital firm managing over $300 million in San Francisco. However, he does not believe this represents a seismic shift in the industry, but rather "a change in a few companies."

But the views of others in Silicon Valley differ.

Another venture capitalist stated, "Many venture capitalists now hold very conservative views, believing that Trump is somewhat off-putting as a person, but at the same time, Trump may be more beneficial for businesses."

Bradley Tusk, a venture capitalist who transitioned from political strategist and has worked for prominent Democrats like Senator Chuck Schumer, noted that he has observed a change in recent months, with more investors expressing support for Trump.

"If they believe Trump has a high chance of winning, they will tell themselves in front of their portfolio companies: 'Well, at least I should exert some influence on the winner,'" he said.

Tusk pointed out that many venture capitalists believe that a Trump/Vance administration would bring more economic benefits.

"Venture capitalists are like every voter; you look back at your life and work under one president and compare it to another. From a purely risk liquidity perspective, life and work under Trump are better. This isn't necessarily Biden's fault, but it's the reality," he said.

Many venture capitalists pointed to the Biden administration's strict regulations on the crypto industry, its stance on artificial intelligence, and what they perceive as the anti-business tendencies of FTC Commissioner Lina Khan—who frequently files lawsuits to block mergers.

"The venture capital industry has gone through a very tumultuous period, with few IPOs, and the FTC has frozen major merger deals, leading investors to vote with their wallets," said a New York venture capitalist. "Venture capitalists believe that under Trump's leadership, the merger/IPOs market will reopen more quickly."

"Vance is more supportive of a lenient regulatory approach to technology, especially in the cryptocurrency space," said a Bay Area venture capitalist. "Given the risks of trying to innovate under the SEC's current stance, people have been avoiding investments in that area, but Vance brings opportunities. Antitrust and FTC rulings may also shift towards a more favorable position for capitalists."

Most venture capitalists interviewed by the media unanimously opposed Lina Khan.

"We need the FTC to relax regulations; it's terrible. We can't sell our companies because Lina Khan is blocking every merger," said a New York venture capitalist, but he also expressed concerns about Trump's anti-democratic tendencies.

"Lina Khan is out of control in terms of justice," complained another Bay Area venture capitalist. "This is really bad for innovation."

However, Vance has also expressed support for Lina Khan's antitrust policies and stated in February that she is "one of the few people in the Biden administration who I think is doing quite well."

Currently, venture capitalists do not seem overly concerned about Vance's potential support for regulation.

"Choosing Vance as a running mate makes Trump's campaign team more pro-Silicon Valley," said a Bay Area venture capitalist. "The shift from Democrat to Republican will make your funding more impactful. Venture capitalists are here to make money; if they aren't making money, then they don't have jobs."

Not everyone believes Vance's selection for the presidential election is significant. "Vance hasn't changed my view," said an investor from Sequoia Capital, a long-standing pillar of the startup ecosystem. He noted that there is a tendency towards Trump in the industry, but this has little to do with Vance and more to do with the general belief that a Trump administration would be more supportive of technology.

Due to concerns about whether Biden is fit to serve as president, venture capitalists also hope Biden will withdraw from the race.

"If Biden and Trump officially face off, I think many 'anti-Trumpers' will support Trump," said a Bay Area venture capitalist. "If Biden is replaced by someone decent, I think many will vote for the Democrats. In my conversations with venture capitalists, many are talking about wanting a change so they don't have to vote for Trump."

"I personally care more about a strong democratic state that values everyone's rights than about my bank account (I don't think a government that disrespects the rule of law benefits anyone's bank account)," said David Hornik, founding partner and investor at Lobby Capital. "Vance is not a friend of business, nor a friend of democracy, nor a friend of a well-functioning economy. I think the venture capital community should be smart enough to recognize this."