a16z co-founders endorse Trump, citing crypto and AI policy concerns

Marc Andreessen and Ben Horowitz, co-founders of prominent venture capital firm Andreessen Horowitz (a16z), have announced their support for Donald Trump in the 2024 presidential race, citing concerns over crypto and AI policy impact on innovation and the broader startup ecosystem.

In a podcast released Tuesday, Andreessen and Horowitz explained their decision to back Trump over incumbent President Joe Biden. The venture capitalists emphasized that their choice stems primarily from concerns about the future of technology, particularly for smaller startups and emerging sectors like crypto and artificial intelligence.

“The future of our business, the future of technology, new technology and the future of America is literally at stake,” Horowitz said.

The a16z co-founders argued that the Biden administration’s policies, particularly those related to crypto regulation, have been overly restrictive and detrimental to the tech industry’s growth.

“I wish we didn’t have to pick a side,” said Horowitz, who acknowledged that such a decision would likely upset his friends and colleagues, and even his family. Horowitz has been a Democrat for most of his life, voting for Bill Clinton, Al Gore, John Kerry, Barack Obama, and Hillary Clinton.

Andreessen highlighted the Republican party’s explicit support for crypto in their 2024 policy platform, which pledges to “end the unlawful and un-American crypto crackdown.” He described this as “a flat-out blanket endorsement of the entire space,” expressing surprise at the level of support.

The venture capitalists’ endorsement aligns with a growing trend of tech industry figures backing Trump’s reelection bid. Elon Musk, CEO of Tesla, has reportedly committed to donating around $45 million monthly to a pro-Trump super PAC. Crypto industry leaders, including Tyler and Cameron Winklevoss, have also pledged their support.

Trump, who survived an assassination attempt this past weekend, recently said in a Bloomberg interview that the US must lead in crypto or risk China overtaking it in the technology.

Andreessen and Horowitz specifically criticized the SEC under Biden-appointed Chair Gary Gensler, citing numerous enforcement actions against their portfolio companies.

“They’ve sued, I think, over 30 of our companies,” Horowitz stated, describing the situation as “terribly frustrating and hard for us and for the industry.”

The a16z founders expressed concern that the regulatory approach to crypto could foreshadow similar treatment of artificial intelligence, another sector in which their firm has invested heavily.

“My big concern is what we saw in crypto was the foreshadowing of what’s gonna happen in AI,” Horowitz explained.

This endorsement comes amid growing tensions between the tech industry and government regulators. Biden’s recent veto of a pro-crypto bill and proposals to close tax loopholes for crypto traders have further strained relations with the industry. The choice made by Andreessen and Horowitz reflects broader concerns within the tech sector on the impact of regulatory policies over innovation and growth.