Silicon Valley Big Shots Shift: Biden Falls Out of Favor, Tech Investors Flock to the Right

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Renowned Investors Publicly Criticize Biden, Fundraising for Trump, Silicon Valley's Political Landscape Shifts Abruptly

The venture capital world in Silicon Valley is undergoing 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 documented this series of political shifts:

Changing Stance: From No Support for Trump to Fundraising Support

In 2021, renowned venture capitalist and host David Sacks stated that former President Trump had lost the eligibility to be a future political candidate due to the Capitol Hill riot on January 6. However, at a recent tech conference, Sacks changed his stance, claiming that his disagreements with Biden are greater than with Trump. Mr. Sacks also revealed that he and his podcast co-host are planning a fundraising event for Trump and have invited Biden, but the Trump camp is more open to it.

Silicon Valley's Political Shift

The political shift in Silicon Valley is particularly noteworthy as the region has long had a close relationship with the Democratic Party. Open support for Trump in Silicon Valley, traditionally seen as a liberal stronghold, was once taboo. However, dissatisfaction with Biden and the Democratic Party is driving some of the most prominent tech venture capitalists to shift towards the right. For example, Chamath Palihapitiya of Social Capital, who previously supported the Democratic Party, is now collaborating with Sacks to organize fundraising events for Trump.

Meanwhile, 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 is focused on electing Republicans to Congress. While these activities represent only a portion of people, their influence is significant.

Many Venture Capital Bigwigs Still Support the Democratic Party

In the past, Republican donors in Silicon Valley were limited to a few tech executives such as Scott McNealy of Sun Microsystems, former eBay CEO Meg Whitman, former HP CEO Carly Fiorina, Oracle executive chairman Larry Ellison, and former managing general partner of Sequoia Capital Doug Leone. Tech companies like Airbnb, Google, Uber, and Apple have also been keen on 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, co-founder of PayPal who once supported Trump, has expressed disappointment in politics and plans to withdraw from the 2024 election campaign.

However, tech investors shifting towards the right have a significant following on social media and substantial funds, making them increasingly politicized.

Startup Industry Policies Sparking Chemical Changes

According to data from PitchBook tracking startups, the industry grew eightfold from 2012 to 2022, reaching $344 billion, making more industry issues political. Bobby Franklin of the National Venture Capital Association stated that current issues are more complex than ever.

Tech Backlash and Political Reassessment

In 2016, Peter Thiel's vocal support for Trump, including a $1.25 million donation and a speech at the Republican National Convention, shocked the entire industry. The ensuing "tech backlash" led some industry leaders to reassess their political views, a trend that continues to ferment amid social and political turmoil during the pandemic.

Tax Proposals and Crypto Policies Spark Discontent

Some investors have expressed disappointment with Biden's nomination of Federal Trade Commission Chair Lina Khan's anti-acquisition strategy and dissatisfaction with Securities and Exchange Commission Chair Gary Gensler's hostile stance towards crypto companies.

Since 2022, startups have been in a slump due to rising interest rates and a bleak IPO market. Sacks believes that Biden's tax proposals, including a 25% billionaire tax on certain holdings, could stifle the development of startups. He stated at a tech conference last week, "This is a good reason for Silicon Valley to seriously consider their voting choices."

One of the founders of Andreessen Horowitz, Marc Andreessen, 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 Federal Trade Commission (FTC) would be led by "very different people," although Trump's presidency was not necessarily a "clean win."

A representative of the National Venture Capital Association stated that Silicon Valley's dissatisfaction with the current situation reflects a widespread disappointment with both parties nationwide.

Supporting Politicians Who Drive the Future with Technology

a16z's Andreessen Horowitz's optimism about the tech-driven future, referred to as "e/acc" last year, may best express the sentiments of these tech investors. In November last year, a group of prominent investors and startup founders collectively wrote to Biden, criticizing his executive orders on artificial intelligence and accusing him of stifling innovation.

What is Vitalik's "d/acc"? How does it differ from "e/acc" effective accelerationism?

ETH ETF, FIT 21 Bill Pass Swiftly

Perhaps due to pressure felt by the Biden administration, unlike the long-awaited Bitcoin spot ETF, the Ethereum spot ETF was approved by the SEC without public feedback. Additionally, the FIT 21 bill, strongly supported by U.S. cryptocurrency industry players, which limits the SEC's regulatory scope and clearly defines decentralized networks, quickly passed the House and is headed to the Senate for review.

This industry-friendly extension of the election will greatly change the future development of industries in the United States and around the world.