Being a venture capitalist carries a lot of prestige in Silicon Valley
Being a venture capitalist carries a lot of prestige in Silicon Valley. Those who choose which startups to fund see themselves as fostering the next big waves of technology.
So when some of the industry’s biggest names endorsed former President Donald Trump and the onetime VC he picked for a running mate, JD Vance, people took notice.
Then hundreds of other VCs — some high profile, others lesser-known — threw their weight behind Vice President Kamala Harris, drawing battle lines over which presidential candidate will be better for tech innovation and the conditions startups need to thrive. For years, many of Silicon Valley’s political discussions took place behind closed doors. Now, those casual debates have gone public — on podcasts, social media and online manifestos.
Venture capitalist and Harris backer Stephen DeBerry says some of his best friends support Trump. Though centered in a part of Northern California known for liberal politics, the investors who help finance the tech industry have long been a more politically divided bunch.
“We ski together. Our families are together. We’re super tight,” said DeBerry, who runs the Bronze Venture Fund. “This is not about not being able to talk to each other. I love these guys — they’re almost all guys. They’re dear friends. We just have a difference of perspective on policy issues.”
It remains to be seen if the more than 700 venture capitalists who’ve voiced support for a movement called “VCs for Kamala” will match the pledges of Trump’s well-heeled supporters such as Elon Musk and Peter Thiel. But the effort marks “the first time I’ve seen a galvanized group of folks from our industry coming together and coalescing around our shared values”, DeBerry said.
“There are a lot of practical reasons for VCs to support Trump”, including policies that could drive corporate profits and stock market values and favor wealthy benefactors, said David Cowan, an investor at Bessemer Venture Partners. But Cowan said he is supporting Harris as a VC with a “long-term investment horizon” because a “Trump world reeling from rampant income inequality, raging wars and global warming is not an attractive environment” for funding healthy businesses.
Several prominent VCs have voiced their support for Trump on Musk’s social platform X. Public records show some of them have donated to a new, pro-Trump super PAC called America PAC, whose donors include powerful tech industry conservatives with ties to SpaceX and Paypal and who run in Musk’s social circle. Also driving support is Trump’s embrace of cryptocurrency and promise to end an enforcement crackdown on the industry.
Although some Biden policies have alienated parts of the investment sector concerned about tax policy, antitrust scrutiny or overregulation, Harris’ bid for the presidency has reenergized interest from VCs who until recently sat on the sidelines.
