LOS ANGELES – Venture capitalism has long been seen as a prestigious career in Silicon Valley. Those who hold this role are responsible for identifying and funding the next big technological breakthroughs. However, the recent endorsements of former President Donald Trump and JD Vance, a former venture capitalist chosen as his running mate, have sparked a debate within the industry.
On one side, there are hundreds of venture capitalists, both well-known and lesser-known, who are throwing their support behind Vice President Kamala Harris. This has created a clear divide between those who believe Trump’s policies will benefit tech innovation and those who believe Harris will create an environment that is more conducive to the success of startups.
Venture capitalist and Harris supporter Stephen DeBerry acknowledges that some of his closest friends are Trump supporters. Despite living in a predominantly liberal area, venture capitalists have always held diverse political perspectives. DeBerry says, “We may have different opinions on policy issues, but we are still friends. We just have different perspectives.”
It remains to be seen if the “VCs for Kamala” movement, which has garnered the support of over 700 venture capitalists, will match the pledges made by Trump’s high-profile supporters like Elon Musk and Peter Thiel.
According to David Cowan, an investor at Bessemer Venture Partners, there are practical reasons for venture capitalists to support Trump, such as policies that could drive corporate profits and stock market values. However, Cowan believes that supporting Harris is a better long-term investment, especially in a world that is struggling with issues like income inequality, war, and global warming. He says, “A Trump world reeling from these problems is not an attractive environment for funding healthy businesses.”
The political schism within the tech industry has left some firms divided in their allegiances. Marc Andreessen and Ben Horowitz, founders of the venture capital firm named after them, have publicly endorsed Trump. However, one of their firm’s general partners, John O’Farrell, has pledged his support for Harris. This reflects the mixed opinions within the industry.
Doug Leone, the former managing partner of Sequoia Capital, also endorsed Trump in June, citing issues like immigration and the ballooning deficit. However, his longtime business partner at Sequoia, Michael Moritz, wrote in the Financial Times that supporting Trump is a “big mistake” for tech leaders.
The discourse among venture capitalists about the presidential election increased after a July podcast and manifesto by Andreessen and Horowitz in which they voiced their support for Trump and outlined their vision for a “Little Tech Agenda.” This agenda aimed to contrast the policies sought by “Big Tech” and focused on issues like taxes, overregulation, and immigration.
Vance, who spent time in San Francisco working at Thiel’s investment firm, shared a similar perspective in an interview with Fox News in June. He argued that the “little tech” companies, or startups, do not want the government to impede their ability to innovate.
The current debate has also been complicated by the fact that breaking up the monopoly power of big corporations is no longer a partisan issue. While Vance has expressed support for Lina Khan, Biden’s pick to lead the Federal Trade Commission, some of the most influential VCs backing Harris, such as Reid Hoffman and Vinod Khosla, have criticized Khan’s approach.
As a Democrat who represents part of Silicon Valley, U.S. Rep. Ro Khanna believes that Trump supporters are a vocal minority within the tech community. While the current administration has made investments in areas like clean energy and electric vehicles, Khanna believes Democrats need to better understand the appeal of digital assets.
Naseem Sayani, a general partner at Emmeline Ventures, joined “VCs for Kamala” because she wanted to show that the investor community is not monolithic. She believes that supporting Harris sends a message to startups, especially those led by women and people of color, that the environment they are in supports their existence.
As the battle lines are drawn between the two presidential candidates, the technology industry is closely watching to see which candidate will create an environment where startups can thrive. The decision is a crucial one for the future of innovation and entrepreneurship, and venture capitalists have a responsibility to support the candidate who will create the best conditions for success.
