A surprising shift is beginning to emerge within the lauded echelons of Silicon Valley’s venture capital circles, where some of the industry’s leaders are expressing discontent with the current administration led by President Joe Biden, and publicly voicing their support for former President Donald Trump. This sentiment represents a noteworthy departure for a sector previously known for throwing its weight behind Democratic candidates.
Figures like David Sacks, Chamath Palihapitiya, Marc Andreessen, and Shaun Maguire, luminaries in the venture capital space, have voiced concern regarding some of Biden’s policy initiatives. Key among these is the proposal for a so-called ‘billionaire tax’ at 25%, as well as enforcement actions by the Federal Trade Commission (FTC) in the realm of antitrust.
Keith Rabois, a one-time executive at PayPal, who also contributed to the success of LinkedIn, Square, and Slide, was quite straightforward while speaking about the current state of affairs. In an interview with The New York Times, he stated, ‘It’s impossible to support Biden.’ Although Rabois isn’t an ardent Trump supporter, he isn’t shy in confessing a desire to see a Republican-majority Congress and Senate.
Discontent among tech executives is not limited to tax and trade policy. There is also a palpable dissatisfaction with certain regulatory decisions impacting the emerging cryptocurrency sector. Specifically, criticisms have been levied at Gary Gensler, picked by Biden to preside over the Securities and Exchange Commission (SEC).
Additionally, Lina Khan, Biden’s chosen chairperson for the FTC, has taken proactive steps against major tech companies perceived to be wielding excessive marketplace power. Despite her ambitious attempts, Khan has faced setbacks, such as failing to halt Microsoft’s $70 billion acquisition of video gaming company Activision Blizzard, or prevent Meta’s bid to purchase virtual reality start-up Within.
Concerns spilled over into last year, when the FTC filed a lawsuit against Amazon, accusing the behemoth e-commerce entity of monopolistic behaviour. Meanwhile, Andreessen, of the distinguished venture capital firm Andreessen Horowitz, expressed reservations about the current Biden administration, hinting at unresolved issues.
The co-founder of Andreessen Horowitz, Ben Horowitz, made it known last year via a blog post that his firm would endorse any political figure advocating for a technology-driven optimistic future. Meanwhile, the Andreessen Horowitz namesake posits that a second Trump administration would bring a unique set of people into pivotal positions in the SEC and the FTC.
David Sacks, who earned his wealth as the COO of PayPal during its initial phase, plans not only to host a fundraising event for Trump, but also to feature the former president on his ‘All In’ podcast. Interestingly, Sacks had earlier opined, following the Jan. 6, 2021 riots at the US Capitol, that Trump was unfit for elective office.
However, as the Biden presidency unfolds, Sacks has reassessed his position. He disclosed to The New York Times that his disagreements with Biden outweigh those he had with Trump. A key sticking point for Sacks is Biden’s proposed taxation scheme, which effectively penalizes startup founders inclined towards awarding stock options to employees.
Sacks used the potential tax change as one of the main reasons for Silicon Valley constituents to reconsider their allegiance in the voting booth. As he expressed to tech investors during a conference, ‘It’s a good reason for Silicon Valley to think really hard about who it wants to vote for.’
Last month, Sacks was among an elite group of tech leaders who gathered at an ‘anti-Biden’ dinner attended also by Elon Musk and Peter Thiel. This collective sentiment was hardly reflective of Silicon Valley’s stance during recent election cycles.
Chamath Palihapitiya, who once served as Mark Zuckerberg’s vice president of user growth in the early days of Facebook, also appears to be aligning himself closer to the Trump camp. Having backed Democrats previously, Palihapitiya, founder of venture capital firm Social Capital, is reported to be co-hosting an upcoming fundraiser for Trump alongside Sacks.
Open support for Trump in Silicon Valley was virtually non-existent in past election periods. But now, as investor Delian Asparouhov of Thiel-backed Founders Fund notes, the zeitgeist has shifted drastically from the need of an apology for voting for Trump four years ago.
Although less forthcoming in his support for Trump, Shaun Maguire, associated with the reputed Sequoia Capital, has not held back from sharing his critique of Biden’s administration on social media platforms. This turn of events highlights this new political paradigm within Silicon Valley, with the White House yet to respond.