Silicon Valley Elites Shifting Loyalties: Tech Investors Flock to the Right as Biden Loses Favor

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Prominent Investor Criticizes Biden Publicly, Fundraises for Trump, Silicon Valley’s Political Wind Shifts
Changing Stance: From Not Supporting Trump to Fundraising Support
The Political Wind Shift in Silicon Valley
Democratic Party Still Has Many Venture Capital Powerhouses
Startup Industry Policies Spark Chemical Changes
Tech Backlash and Political Reassessment
Displeasure 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 community is experiencing 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 eligibility to become a future political candidate due to the January 6th Capitol riot.
However, Sacks changed his stance at a tech conference last week, claiming that his disagreements with Biden are greater than his disagreements with Trump. Mr. Sacks also revealed that he and his podcast co-host are organizing a fundraiser for Trump and have extended an invitation to Biden, but the Trump campaign is more open to it.
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Silicon Valley’s political shift is particularly notable because the region has long had close ties to the Democratic Party. Open support for Trump in Silicon Valley, which has been seen as a liberal stronghold, was once taboo.
However, dissatisfaction with Biden and the Democratic Party is pushing some of the most famous tech venture capitalists towards the right. For example, Chamath Palihapitiya of Social Capital, who previously supported the Democratic Party, is now involved in organizing Trump’s fundraisers alongside Sacks.
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 focuses on electing Republicans to Congress. While these activities only represent a portion of people, their influence cannot be ignored.
In the past, Republican donors in Silicon Valley were limited to a few high-ranking tech executives, such as Scott McNealy, founder of Sun Microsystems; Meg Whitman, former CEO of eBay; Carly Fiorina, former CEO of HP; Larry Ellison, executive chairman of Oracle; and Doug Leone, former managing partner of Sequoia Capital. Tech companies like Airbnb, Google, Uber, and Apple have also been enthusiastic about hiring former members of the Obama administration.
Many Silicon Valley investors, including Reid Hoffman and Vinod Khosla, remain loyal to the Democratic Party, while Peter Thiel, a former supporter of Trump and co-founder of PayPal, has expressed disappointment in politics and plans to withdraw from the 2024 election campaign.
However, the tech investors who have shifted towards the right have a large following on social media and substantial funds, making them increasingly politicized.
According to PitchBook data tracking startups, the startup industry has grown eightfold from 2012 to 2022, reaching $344 billion, and more industry issues have become political. 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 subsequent “tech backlash” led some industry leaders to reassess their political views, a trend that continues to ferment during times of social and political turmoil, such as the pandemic.
Some investors express disappointment with Lina Khan, the Federal Trade Commission chair nominee selected by Biden, and dissatisfaction with Gary Gensler, the chair 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 proposed tax proposals, including a 25% billionaire tax on certain holdings, could stifle the development of startups. He said at the tech conference last week, “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,” although 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 the general disappointment in both parties nationwide.
The phrase “e/acc” (optimistic view of a technology-driven future) mentioned by Andreessen Horowitz last year may best express the sentiments of these tech investors. In November of last year, a group of prominent investors and startup founders co-signed a letter to Biden criticizing his executive orders targeting artificial intelligence and accusing him of stifling innovation.
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What is Vitalik’s “d/acc”? How is it different 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 Ether spot ETF was approved by the SEC without public improvement suggestions. In addition, the FIT 21 bill, strongly supported by US cryptocurrency industry players, which limits the regulatory scope of the SEC and clearly defines decentralized networks, quickly passed the House of Representatives and will proceed to the Senate for review.
This industry-friendly development, extended from the election, will greatly change the industrial development of the United States and the world.
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