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Which candidate is better for tech innovation? Venture capitalists divided on Harris or Trump

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Which candidate is better for tech innovation? Venture capitalists divided on Harris or Trump
News

News

Which candidate is better for tech innovation? Venture capitalists divided on Harris or Trump

2024-09-15 17:00 Last Updated At:17:10

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)

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)

LONDON (AP) — A British teen pleaded guilty Monday to murdering three girls and attempting to kill 10 other people in what a prosecutor said was a “meticulously planned” stabbing rampage at a Taylor Swift-themed dance class in England last summer.

Axel Rudakubana, 18, entered the surprise plea as jury selection had been expected to begin at the start of his trial in Liverpool Crown Court.

The July 29 stabbings sent shock waves across the U.K. and led to a week of widespread rioting across parts of England and Northern Ireland after the suspect was falsely identified as an asylum-seeker who had recently arrived in Britain by boat. He was born in Wales.

The attack occurred on the first day of summer vacation when the little girls at the Hart Space, a sanctuary hidden behind a row of houses, were in a class to learn yoga and dance to the songs of Taylor Swift. What was supposed to be a day of joy turned to terror and heartbreak when Rudakubana, armed with a knife, intruded and began stabbing the girls and their teacher in the seaside town of Southport in northwest England.

“This was an unspeakable attack — one which left an enduring mark on our community and the nation for its savagery and senselessness," Deputy Chief Crown Prosecutor Ursula Doyle said. “A day which should have been one of carefree innocence; of children enjoying a dance workshop and making friendship bracelets, became a scene of the darkest horror as Axel Rudakubana carried out his meticulously planned rampage.”

Prosecutors haven’t said what they believe led Rudakubana — who was days shy of his 18th birthday — to commit the atrocities, but Doyle said that it was clear he had a “a sickening and sustained interest in death and violence.”

Rudakubana had consistently refused to speak in court and did so once again when asked to identify himself at the start of the proceedings. But he broke his silence when he was read the 16-count indictment and asked to enter a plea, replying “guilty” to each charge.

He pleaded guilty to three counts of murder, 10 counts of attempted murder and additional charges related to possessing the poison ricin and for having an al-Qaida manual.

Rudakubana faces life imprisonment when sentenced Thursday, Justice Julian Goose said.

Defense lawyer Stanley Reiz said that he would present information to the judge about Rudakubana's mental health that may be relevant to his sentence.

The surviving victims and family members of those killed were absent in court, because they had expected to arrive Tuesday for opening statements.

Goose asked the prosecutor to apologize on his behalf that they weren't present to hear Rudakubana plead guilty.

He pleaded guilty to murdering Alice Da Silva Aguiar, 9, Elsie Dot Stancombe, 7, and Bebe King, 6.

Eight other girls, ranging in age from 7 to 13, were wounded, along with instructor Leanne Lucas and John Hayes, who worked in a business next door and intervened. Fifteen other girls, as young as 5, were at the class but uninjured. Under a court order, none of the surviving girls can be named.

Hayes, who was stabbed and seriously wounded, said he still had flashbacks to the attack and was “hugely upset at the time that I wasn’t able to do more.”

“But I did what I could in the circumstances,” he told Sky News. “I’m grateful to be here, and by all accounts I’ll make a full recovery, at least physically. … I’m going to be OK and others won’t be, and that’s really where I I think the focus of attention should be.”

Police said the stabbings weren’t classified as acts of terrorism because the motive wasn’t known.

Several months after his arrest at the scene of the crime, Rudakubana was charged with additional counts for production of a biological toxin, ricin and possession of information likely to be useful to a person committing or preparing to commit an act of terrorism for having the manual in a document on his computer.

Police said they found the evidence during a search of his family's home in a neighboring village.

The day after the killings — and shortly after a peaceful vigil for the victims — a violent group attacked a mosque near the crime scene and pelted police officers with bricks and bottles and set fire to police vehicles.

Rioting then spread to dozens of other towns over the next week when groups made up mostly of men mobilized by far-right activists on social media clashed with police during violent protests and attacked hotels housing migrants.

More than 1,200 people were arrested for the disorder and hundreds have been jailed for up to nine years in prison.

In this Court artist sketch by Elizabeth Cook, Southport stabbings suspect Axel Rudakubana appears on the first day of his trial at Liverpool Crown Court, where he has pleaded guilty to killing three young girls and wounded 10 other people in a knife attack at a Taylor Swift-themed dance class, in Liverpool, England, Monday, Jan. 20, 2025. (Elizabeth Cook/PA via AP)

In this Court artist sketch by Elizabeth Cook, Southport stabbings suspect Axel Rudakubana appears on the first day of his trial at Liverpool Crown Court, where he has pleaded guilty to killing three young girls and wounded 10 other people in a knife attack at a Taylor Swift-themed dance class, in Liverpool, England, Monday, Jan. 20, 2025. (Elizabeth Cook/PA via AP)

People queue at Liverpool Crown Court in Liverpool, England, Monday, Jan. 20, 2025 where Axel Rudakubana is charged with killing three girls and wounding 10 other people in a stabbing rampage at a Taylor Swift-themed dance class in England last summer.(AP Photo/Jon Super)

People queue at Liverpool Crown Court in Liverpool, England, Monday, Jan. 20, 2025 where Axel Rudakubana is charged with killing three girls and wounding 10 other people in a stabbing rampage at a Taylor Swift-themed dance class in England last summer.(AP Photo/Jon Super)

A prison van believed to contain Axel Rudakubana arrives at Liverpool Crown Court in Liverpool, England, Monday, Jan. 20, 2025 where Rudakubana is charged with killing three girls and wounding 10 other people in a stabbing rampage at a Taylor Swift-themed dance class in England last summer.(AP Photo/Jon Super)

A prison van believed to contain Axel Rudakubana arrives at Liverpool Crown Court in Liverpool, England, Monday, Jan. 20, 2025 where Rudakubana is charged with killing three girls and wounding 10 other people in a stabbing rampage at a Taylor Swift-themed dance class in England last summer.(AP Photo/Jon Super)

A prison van believed to contain Axel Rudakubana arrives at Liverpool Crown Court in Liverpool, England, Monday, Jan. 20, 2025 where Rudakubana is charged with killing three girls and wounding 10 other people in a stabbing rampage at a Taylor Swift-themed dance class in England last summer.(AP Photo/Jon Super)

A prison van believed to contain Axel Rudakubana arrives at Liverpool Crown Court in Liverpool, England, Monday, Jan. 20, 2025 where Rudakubana is charged with killing three girls and wounding 10 other people in a stabbing rampage at a Taylor Swift-themed dance class in England last summer.(AP Photo/Jon Super)

FILE - Police officers watch members of the public outside the Town Hall in Southport, England, Aug. 5, 2024 after three young girls were killed in a knife attack at a Taylor Swift-themed holiday club the week before. (AP Photo/Darren Staples, File)

FILE - Police officers watch members of the public outside the Town Hall in Southport, England, Aug. 5, 2024 after three young girls were killed in a knife attack at a Taylor Swift-themed holiday club the week before. (AP Photo/Darren Staples, File)

FILE - Tributes are seen outside the Town Hall in Southport, England, Aug. 5, 2024 after three young girls were killed in a knife attack at a Taylor Swift-themed holiday club the week before. (AP Photo/Darren Staples, File)

FILE - Tributes are seen outside the Town Hall in Southport, England, Aug. 5, 2024 after three young girls were killed in a knife attack at a Taylor Swift-themed holiday club the week before. (AP Photo/Darren Staples, File)

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