Some of the richest and most influential investors in Silicon Valley have publicly shown their support for Donald Trump’s campaign. These investors lead powerful firms that many founders aspire to have as backers. However, their financial backing of Trump has caused some Black founders to reconsider having them on their cap table, according to seven Black founders and investors who spoke to TechCrunch.
The fact that some venture capitalists are supporting Trump is not surprising, as some have historically leaned politically right. Sequoia’s Doug Leone and Shaun Maguire, Keith Rabois from Khosla Ventures, and David Sacks of Craft Ventures are among those who have shown support for Trump. However, the recent public endorsement of Trump by Marc Andreessen and Ben Horowitz, founders of Andreessen Horowitz, has shocked many in the Valley.
For some Black founders, the support of candidates who do not advocate for a fair shot or level playing field for all individuals raises concerns. One Nigerian American founder expressed pessimism about the current fundraising landscape, with less than a 2% chance of raising funds as things stand.
While there are Black founders and investors who are indifferent to an investor’s political views and will still engage with those who support Trump, others feel betrayed. The support of Trump by a16z’s Horowitz, in particular, has led to feelings of disappointment among those who viewed him as an ally to the Black community.
Trump’s advocacy for policies that could be detrimental to people of color, such as anti-immigrant measures and opposition to diversity, equity, and inclusion efforts, has further fueled the concerns of Black founders. Horowitz’s past involvement in initiatives supporting the Black community has made his support for Trump even more difficult for some to reconcile.
The Black tech community, which has seen progress in funding and opportunities in recent years, is now grappling with the implications of prominent investors publicly endorsing Trump. The need to reevaluate relationships with investors and navigate the changing landscape of political affiliations in the tech industry has become a priority for many Black founders.
As Black founders reflect on the implications of investors’ political views, the broader conversation around allyship, social justice, and support for marginalized communities in the tech sector has been reignited. The tension between personal interests, profit motives, and social responsibility is a central theme in the discussions taking place within the Black tech community.
Moving forward, Black founders are considering their options and weighing the importance of networking with influential investors while staying true to their values and principles. The intersection of politics, investing, and social impact is prompting a deeper examination of the role of tech leaders in shaping a more inclusive and equitable industry landscape.
