LOS ANGELES (AP) — 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. Some of that excitement is due to existing relationships with Silicon Valley that are borne out of Harris' career in the San Francisco area and her time as California's attorney general.
“We buy risk, right? And we’re trying to buy the right type of risk,” Leslie Feinzaig, founder of “VCs for Kamala” said in an interview. “It’s really hard for these companies that are trying to build products and scale to do so in an unpredictable institutional environment.”
The schism in tech has left some firms split in their allegiances. Although venture capitalists Marc Andreessen and Ben Horowitz, founders of the firm that is their namesake, endorsed Trump, one of their firm’s general partners, John O’Farrell, pledged his support for Harris. O’Farrell declined further comment.
Doug Leone, the former managing partner of Sequoia Capital, endorsed Trump in June, expressing concern on X “about the general direction of our country, the state of our broken immigration system, the ballooning deficit, and the foreign policy missteps, among other issues.” But Leone’s longtime business partner at Sequoia, Michael Moritz, wrote in the Financial Times that tech leaders supporting Trump “are making a big mistake.”
Shaun Maguire, a partner at Sequoia, posted on X that he donated $300,000 to Trump’s campaign after supporting Hilary Clinton in the 2016 presidential election. Federal Election Commission records show that Maguire donated $500,000 to America PAC in June; Leone donated $1 million.
“The area where I disagree with Republicans the most is on women’s rights. And I’m sure I’ll disagree with some of Trump’s policies in the future,” Maguire wrote. “But in general I think he was surprisingly prescient.”
Feinzaig, managing director at venture firm Graham & Walker, said that she launched “VCs for Kamala” because she felt frustrated that “the loudest voices” were starting to “sound like they were speaking for the entire industry.”
Much of the VC discourse about elections is in response to a July podcast and manifesto in which Andreessen and Horowitz backed Trump and outlined their vision of a “Little Tech Agenda” that they said contrasted with the policies sought by Big Tech.
They accused the U.S. government of increasing hostility toward startups and the VCs who fund them, citing Biden's proposed higher taxes on the wealthy and corporations and regulations they said could hobble emerging industries involving blockchain and artificial intelligence.
Vance, a U.S. senator from Ohio who spent time in San Francisco working at Thiel's investment firm, voiced a similar perspective about “little tech” more than a month before he was chosen as Trump’s running mate.
“The donors who were really involved in Silicon Valley in a pro-Trump way, they’re not big tech, right? They’re little tech. They’re starting innovative companies. They don’t want the government to destroy their ability to innovate," Vance said in an interview on Fox News in June.
Days earlier, Vance had joined Trump at a San Francisco fundraiser at the home of venture capitalist and former PayPal executive David Sacks, a longtime conservative. Vance said Trump spoke to about 100 attendees that included “some of the leading innovators in AI.”
DeBerry said he doesn’t disagree with everything Andreesen Horowitz founders espouse, particularly their wariness about powerful companies controlling the agencies that regulate them. But he objects to their “little tech” framing, especially coming from a multibillion-dollar investment firm that he says is hardly the voice of the little guy. For DeBerry, whose firm focuses on social impact, the choice is not between big and little tech but “chaos and stability," with Harris representing stability.
Complicating the allegiances is that a tough approach to breaking up the monopoly power of big corporations no longer falls along partisan lines. Vance has spoken favorably of Lina Khan, who Biden picked to lead the Federal Trade Commission and has taken on several tech giants. Meanwhile, some of the most influential VCs backing Harris -- such as LinkedIn co-founder Reid Hoffman; and Sun Microsystems co-founder Vinod Khosla, an early investor in ChatGPT-maker OpenAI -- have sharply criticized Khan’s approach.
U.S. Rep. Ro Khanna, a Democrat whose California district encompasses part of Silicon Valley, said Trump supporters are a vocal minority reflecting a “third or less” of the region’s tech community. But while the White House has appealed to tech entrepreneurs with its investments in clean energy, electric vehicles and semiconductors, Khanna said Democrats must do a better job of showing that they understand the appeal of digital assets.
“I do think that the perceived lack of embrace of Bitcoin and the blockchain has hurt the Democratic Party among the young generation and among young entrepreneurs,” Khanna said.
Naseem Sayani, a general partner at Emmeline Ventures, said Andreessen and Horowitz's support of Trump became a lightning rod for those in tech who do not back the Republican nominee. Sayani signed onto "VCs for Kamala," she said, because she wanted the types of businesses that she helps fund to know that the investor community is not monolithic.
“We’re not single-profile founders anymore,” she said. "There’s women, there’s people of color, there’s all the intersections. How can they feel comfortable building businesses when the environment they’re in doesn’t actually support their existence in some ways?”
Stephen DeBerry, Founder & Managing Partner of the Bronze Venture Fund, poses for photos in Mill Valley, Calif., Thursday, Aug. 8, 2024. (AP Photo/Jeff Chiu)
Stephen DeBerry, Founder & Managing Partner of the Bronze Venture Fund, poses for photos in Mill Valley, Calif., Thursday, Aug. 8, 2024. (AP Photo/Jeff Chiu)
BEIRUT (AP) — Explosions went off in Beirut and multiple parts of Lebanon in an apparent second wave of detonations of electronic devices, Hezbollah officials and state media said Wednesday, reporting walkie-talkies and even solar equipment detonating a day after hundreds of pagers blew up. At least one person was killed and more than 100 people wounded, the Health Ministry said.
Several blasts were heard at the funeral in Beirut for three Hezbollah members and a child killed by exploding pagers the day before, according to Associated Press journalists at the scene. An AP photographer in the southern coastal city of Sidon saw a car and a mobile phone shop damaged after devices exploded inside of them.
A Hezbollah official told the AP that walkie-talkies used by the group exploded. The official spoke on condition of anonymity because he was not authorized to speak to the media. Lebanon’s official news agency reports that solar energy systems exploded in homes in several areas of Beirut and in southern Lebanon, wounding at least one girl.
The new blasts hit a country still thrown into confusion and anger after Tuesday's pager bombings, which appeared to be a complex Israeli attack targeting Hezbollah members that caused civilian casualties, too. At least 12 people were killed, including two children, and some 2,800 people wounded as hundreds of pagers used by Hezbollah members began detonating wherever they happened to be — in homes, cars, at grocery stores and in cafes.
In the first wave of bombings, it appeared that small amounts of explosives had been hidden in the thousands of pagers delivered to Hezbollah and remotely detonated. The reports of further electronic devices exploding suggested even greater infiltration of boobytraps into Lebanon's supply chain. It also deepens concerns over the attacks in which hundreds of blasts went off in public areas, often with many bystanders, with no certainty of who was holding the rigged devices.
The attacks, which Israel has not commented on, renewed fears that the simmering conflict between Israel and Hezbollah could escalate into all-out war. Secretary of State Antony Blinken said Wednesday the U.S. is still assessing how the attack could affect efforts to negotiate a cease-fire in the Israel-Hamas war in Gaza.
Israel began moving more troops to its border with Lebanon on Wednesday as a precautionary measure, according to an official with knowledge of the movements who spoke on condition of anonymity because he was not authorized to speak to the media.
Hezbollah and Israeli forces have exchanged fire almost daily since Oct. 8, the day after a deadly Hamas-led assault in southern Israel triggered the war. Since then, hundreds have been killed in the strikes in Lebanon and dozens in Israel, while tens of thousands on each side of the border have been displaced. Hamas and Hezbollah are allies and both are supported by Iran. Israeli leaders have issued a series of warnings in recent weeks that they might increase operations against Hezbollah in Lebanon, saying they must put a stop to the exchanges to allow people to return to homes near the border.
New details on the operation began to emerge. An American official said Israel briefed the United States after the attack, in which small amounts of explosive had been hidden in the pagers. The person spoke on the condition of anonymity because they were not authorized to discuss the information publicly.
The pagers were made by a company based in Hungary, another firm said Wednesday.
The AR-924 pagers used in Tuesday's attack were manufactured by BAC Consulting KFT, which is based in the Hungarian capital of Budapest, according to a statement released by Gold Apollo, a Taiwanese firm that authorized the use of its brand on the pagers.
Gold Apollo's chair, Hsu Ching-kuang, told journalists Wednesday the firm has had a licensing agreement with BAC for the past three years.
“According to the cooperation agreement, we authorize BAC to use our brand trademark for product sales in designated regions, but the design and manufacturing of the products are solely the responsibility of BAC,” Gold Apollo said in a statement.
BAC Consulting Kft. was registered as a limited liability company in May 2022, according to its records. It has 7,840 euros in standing capital, the records showed, and had revenue of $725,768 in 2022 and $593,972 in 2023.
At the headquarters of a building in a residential neighborhood of Budapest, the names of multiple companies, including BAC Consulting, are posted on pieces of paper on a window.
A woman who emerged from the building and declined to give her name said the site provides headquarter addresses to various companies.
BAC's parent company is registered to Cristiana Rosaria Bársony-Arcidiacono, whose describes herself on her LinkedIn page as a strategic advisor and business developer. Among other positions, Bársony-Arcidiacono says on the page that she has served on the board of directors of the Earth Child Institute, a sustainability group. The group does not list Bársony-Arcidiacono as among its board members on its website.
The Associated Press has attempted to reach Bársony-Arcidiacono via the LinkedIn page and has been unable to establish a connection between her or BAC and the exploding pagers.
The attack in Lebanon started Tuesday afternoon, when pagers in their owners' hands or pockets started heating up and then exploding — leaving blood-splattered scenes and panicking bystanders.
It appeared that most of those hit were members or linked to members of Hezbollah — whether fighters or civilians — but it was not immediately clear if people with no ties to Hezbollah were also hit.
The Health Ministry said health care workers and two children were among those killed. In the village of Nadi Sheet in the Bekaa Valley, dozens gathered to mourn the death of one of the children, 9-year-old Fatima Abdullah.
Her mother, wearing black and donning a yellow Hezbollah scarf, wept alongside other women and children as they gathered around the little girl’s coffin before her burial.
Hezbollah said in a statement Wednesday morning that it would continue its normal strikes against Israel as part of what it describes as a support front for its ally, Hamas, and Palestinians in Gaza.
“This path is continuous and separate from the difficult reckoning that the criminal enemy must await for its massacre on Tuesday,” it said. “This is another reckoning that will come, God willing.”
At hospitals in Beirut on Wednesday, the chaos of the night before had largely subsided, but relatives of the wounded continued to wait.
Lebanon Health Minister Firas Abiad told journalists during a tour of hospitals Wednesday morning that many of the wounded had severe injuries to the eyes, and others had limbs amputated. Journalists were not allowed to enter hospital rooms or film patients.
Abiad said the wounded had been sent to various area hospitals to avoid any single facility being overloaded and added that Turkey, Iraq, Iran, Syria and Egypt offered to help treat the patients.
Earlier Wednesday, an Iraqi military plane landed in Beirut carrying 15 tons of medicine and medical equipment, he said.
Experts believe explosive material was put into the pagers prior to their delivery.
The AR-924 pager, advertised as being “rugged,” contains a rechargeable lithium battery, according to specifications advertised on Gold Apollo’s website before they were removed after the attack.
It claimed to have up to 85 days of battery life. That would be crucial in Lebanon, where electricity outages have been common after years of economic collapse. Pagers also run on a different wireless network than mobile phones, making them more resilient in emergencies — one of the reasons why many hospitals worldwide still rely on them.
For Hezbollah, the pagers also provided a means to sidestep what’s believed to be intensive Israeli electronic surveillance on mobile phone networks in Lebanon.
“The phone that we have in our hands — I do not have a phone in my hand — is a listening device,” warned Hezbollah chief Hassan Nasrallah in a February speech.
Taiwan's Ministry of Economic Affairs said from the beginning of 2022 until August 2024, Gold Apollo has exported 260,000 sets of pagers, including more than 40,000 sets between January and August of this year. The ministry said that it had no records of direct exports of Gold Apollo pagers to Lebanon.
This story has been updated to correct the age of one of the children killed. She was 9, not 8.
Spike reported from Budapest and Lai from Taipei, Taiwan. Associated Press journalists Abby Sewell and Kareem Chehayeb in Beirut; Simina Mistreanu in Taipei; Melanie Lidman and Josef Federman in Jerusalem; Zeke Miller in Washington; and Jon Gambrell in Dubai, United Arab Emirates, contributed to this report.
CORRECTS DAY TO TUESDAY WHEN INJURED Lebanese Red Cross ambulance passes next of the families of victims who were injured on Tuesday by their exploding handheld pagers, at the emergency entrance of the American University hospital, in Beirut, Lebanon, Wednesday, Sept. 18, 2024. (AP Photo/Hussein Malla)
CORRECTS DAY TO TUESDAY WHEN INJURED Families of victims who were injured on Tuesday by their exploding handheld pagers, wait at the emergency entrance of the American University hospital, in Beirut, Lebanon, Wednesday, Sept. 18, 2024. (AP Photo/Hussein Malla)
Lebanese security officers stand next of a partly damaged car after what is believed to be the result of a walkie-talkie exploding inside it, in the southern port city of Sidon, Lebanon, Wednesday, Sept. 18, 2024. (AP Photo/Mohammed Zaatari)
Lebanese Red Cross ambulance passes next of the families of victims who were injured on Monday by their exploding handheld pagers, at the emergency entrance of the American University hospital, in Beirut, Lebanon, Wednesday, Sept. 18, 2024. (AP Photo/Hussein Malla)
Families of victims who were injured on Monday by their exploding handheld pagers, wait at the emergency entrance of the American University hospital, in Beirut, Lebanon, Wednesday, Sept. 18, 2024. (AP Photo/Hussein Malla)
This shows a sing featuring the names of several companies on the door of a house where a Hungarian company that allegedly manufactured pagers that exploded in Lebanon and Syria is headquartered in Budapest Wednesday, Sept. 18, 2024. (AP Photo/Denes Erdos)
This photo shows a door of a house where a Hungarian company that allegedly manufactured pagers that exploded in Lebanon and Syria is headquartered in Budapest Wednesday, Sept. 18, 2024. (AP Photo/Denes Erdos)
This photo shows a house where a Hungarian company that allegedly manufactured pagers that exploded in Lebanon and Syria, is headquartered in Budapest Wednesday, Sept. 18, 2024. (AP Photo/Denes Erdos)
Civil Defense first-responders carry a man who was wounded after his handheld pager exploded, in the southern port city of Sidon, Lebanon, Tuesday, Sept. 17, 2024.(AP Photo)
Hsu Ching-kuang, chairman of Apollo Gold, talks about the Taiwan company's communication products at the headquarters in New Taipei City, Taiwan Wednesday, Sept. 18, 2024. (AP Photo/Johnson Lai)
Hsu Ching-kuang, chairman of Apollo Gold, talks about the Taiwan company's communication products at the headquarters in New Taipei City, Taiwan Wednesday, Sept. 18, 2024. (AP Photo/Johnson Lai)
A police officer inspects a car in which a hand-held pager exploded, in Beirut, Lebanon, Tuesday, Sept. 17, 2024. (AP Photo/Hussein Malla)
People gather outside the American University hospital after the arrival of several men who were wounded by exploded handheld pagers, in Beirut, Lebanon, Tuesday, Sept. 17, 2024. (AP Photo/Bassam Masri)
Lebanese soldiers stand guard at a street that leads to the American University hospital where they bring wounded people whose handheld pager exploded, in Beirut, Lebanon, Tuesday, Sept. 17, 2024. (AP Photo/Hassan Ammar)
