The endorsement of former President Donald Trump and his running mate JD Vance by some of Silicon Valley’s biggest venture capitalists has sparked a division within the industry. In response, hundreds of other venture capitalists have thrown their support behind Vice President Kamala Harris, creating a clear divide over which presidential candidate will be more beneficial for tech innovation and startup conditions. The split has caused some firms to be divided in their allegiances, with notable figures endorsing different candidates within the same firm.
Venture capitalist and Harris supporter Stephen DeBerry acknowledges that some of his closest friends are Trump supporters, emphasizing that the disagreement stems from differing perspectives on policy issues rather than personal animosity. While Trump’s well-known supporters, such as Elon Musk and Peter Thiel, have made significant pledges, it remains to be seen if the more than 700 venture capitalists supporting “VCs for Kamala” will match their contributions.
Some venture capitalists have cited practical reasons for supporting Trump, including policies that could drive corporate profits and stock market values, as well as favoring wealthy benefactors. However, others, like David Cowan of Bessemer Venture Partners, are backing Harris due to their long-term investment horizon and concerns about income inequality, global warming, and ongoing conflicts.
The support for Trump among some venture capitalists has been fueled by his embrace of cryptocurrency and promise to ease enforcement crackdowns on the industry. On the other hand, Harris’ bid for the presidency has reenergized interest from venture capitalists who were previously sitting on the sidelines, as they believe an unpredictable institutional environment under a Trump administration would hinder the growth of healthy businesses.
The divide in the tech industry has also highlighted the complexity of allegiances, as a tough approach to breaking up the monopoly power of big corporations no longer falls strictly along partisan lines. JD Vance, for example, has expressed support for Lina Khan, Biden’s pick to lead the Federal Trade Commission, who has taken on several tech giants. However, influential venture capitalists backing Harris, such as Reid Hoffman and Vinod Khosla, have criticized Khan’s approach.
While Trump supporters in Silicon Valley are vocal, they represent a minority within the tech community, according to U.S. Rep. Ro Khanna. He believes that Democrats need to better understand the appeal of digital assets and demonstrate their support for the diverse range of founders in the industry.
Naseem Sayani, a general partner at Emmeline Ventures, joined “VCs for Kamala” to show that the investor community is not monolithic and to provide reassurance to the businesses she supports, which include women and people of color. She believes that a supportive environment is crucial for these founders to build successful businesses.