Key Takeaways
- • Marc Andreessen, co-founder of Andreessen Horowitz (a16z), says he is no longer loyal to the Democratic Party and is supporting and voting for former President Donald Trump in the 2024 presidential race, according to TechCrunch.
- • Andreessen cites Trump's policies as more favorable for tech and the startup ecosystem, and names Biden's proposed tax on unrealized capital gains as "the final straw" in his switch.
- • Andreessen said that Trump's crypto regulation plan is "a flat-out blanket endorsement of the entire space," contrasting it with the Biden administration's approach.
- • The co-founders oppose the White House plan to "overregulate" artificial intelligence, and Horowitz said Trump told them at a recent dinner that "we absolutely have to win because if we don't win, China wins."
- • a16z, founded 15 years ago, manages more than $42 billion in assets under management, according to PitchBook.
Summary
Marc Andreessen, co-founder of Andreessen Horowitz, says he has been a Democrat for most of his life and has endorsed and voted for Bill Clinton, Al Gore, John Kerry, Barack Obama and Hillary Clinton. He now says he is no longer loyal to the Democratic Party and is supporting former President Donald Trump over President Joe Biden in the 2024 presidential race. He primarily attributes the choice to Trump's policies being more favorable for technology and the startup ecosystem. Andreessen and Ben Horowitz, a16z co-founder, explained their reasoning on "The Ben & Marc Show" podcast. Horowitz acknowledged the political choice would upset many of their friends and even his mother, saying, "I wish we didn't have to pick a side."
The co-founders argued that technological prowess, alongside economic strength and military might, is one of three pillars that made the U.S. the most successful country over the last century, helping it defeat the Soviet Union, which they said ended the Cold War because it could not keep up technologically. They contend the Biden administration is stifling startups through overregulation and potentially needless taxation, while Trump would foster innovation. They oppose the current White House plan to overregulate artificial intelligence, with Andreessen saying, "Any limitations we put [on] ourselves are going to disadvantage the U.S. versus the rest of the World." Horowitz said Trump, at a recent dinner with the founders, described AI as "very scary" but stressed the U.S. must win against China.
On crypto, Andreessen described Trump's regulatory plan as a full endorsement of the sector, in contrast to the Biden administration. Andreessen called Biden's proposal to tax unrealized capital gains "the final straw." Under such a tax, startups could face taxes on valuation increases even though private company appreciation is not liquid. "If you're a venture firm, you're getting strips of your portfolio pulled away from you every year. You're out of business," Andreessen said.
Andreessen has previously championed technology's societal role, publishing a "Techno-Optimist Manifesto" last October. According to PitchBook, the 15-year-old firm is one of the largest venture investors in Silicon Valley, with more than $42 billion in assets under management.
The co-founders argued that technological prowess, alongside economic strength and military might, is one of three pillars that made the U.S. the most successful country over the last century, helping it defeat the Soviet Union, which they said ended the Cold War because it could not keep up technologically. They contend the Biden administration is stifling startups through overregulation and potentially needless taxation, while Trump would foster innovation. They oppose the current White House plan to overregulate artificial intelligence, with Andreessen saying, "Any limitations we put [on] ourselves are going to disadvantage the U.S. versus the rest of the World." Horowitz said Trump, at a recent dinner with the founders, described AI as "very scary" but stressed the U.S. must win against China.
On crypto, Andreessen described Trump's regulatory plan as a full endorsement of the sector, in contrast to the Biden administration. Andreessen called Biden's proposal to tax unrealized capital gains "the final straw." Under such a tax, startups could face taxes on valuation increases even though private company appreciation is not liquid. "If you're a venture firm, you're getting strips of your portfolio pulled away from you every year. You're out of business," Andreessen said.
Andreessen has previously championed technology's societal role, publishing a "Techno-Optimist Manifesto" last October. According to PitchBook, the 15-year-old firm is one of the largest venture investors in Silicon Valley, with more than $42 billion in assets under management.
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