Marc Andreessen, co-founder of the venture capital firm a16z, has shocked many with a recent political decision. After being a lifelong Democrat, Andreessen now supports the Republican Donald Trump for the 2024 presidential race.
The reason? Trump’s friendliness to crypto and technological innovation. Andreessen’s Democratic roots run deep. He’s backed Bill Clinton, Al Gore, John Kerry, Barack Obama, and Hillary Clinton in past elections. But in 2024, he’s breaking ranks.
Ben Horowitz. Credits: Getty Images
Andreessen believes Trump’s policies are better for the tech industry, especially startups, compared to Joe Biden’s administration. His co-founder Ben Horowitz shares his sentiments. He said that:
“We literally believe the future of our business, the future of technology, and the future of America is at stake.”
They believe that tech is one of the three pillars, along with the economy and military might, that has made the U.S. a global leader. Andreessen emphasized that:
“If you don’t have the tech part of that triangle, you’re not going to have the economy part, you’re not going to have the military part.”
Andreessen and Horowitz listed several reasons for disliking the Biden administration. They believe that excessive regulation and unnecessary taxation are stifling startups. One important issue is the White House’s approach to artificial intelligence (AI).
“Any limitations we put on ourselves are going to disadvantage the U.S. versus the rest of the world,” Andreessen said. He shared insights from a dinner with Trump, where the former president acknowledged AI’s risks but stressed the need for America to lead in this area.
Donald J. Trump. Credits: Trump Campaign
“If we don’t win, China wins,” Trump reportedly told them. Andreessen praised Trump’s crypto regulation plan as “a flat-out blanket endorsement of the entire industry.”
This is like the opposite of Biden’s approach, which Andreessen sees as overly restrictive and harmful to innovation.
The Biden administration’s proposal to tax unrealized capital gains was the final straw for Andreessen. If implemented, this tax could force startups to pay taxes on valuation increases, which Andreessen believes would be disastrous.
“If you’re a venture firm, you’re getting strips of your portfolio pulled away from you every year. You’re out of business,” he said. “This makes startups completely implausible.”
