Two months into Donald Trump’s second term, the tech industry’s conservative leaders—some of whom are serving as advisors to the administration—are experiencing significant unrest. They are expressing frustration over the president’s erratic governance, which is proving to be especially challenging for managing their businesses.
### Discontent Among Supporters
Reggie James, the founder of Eternal, a media company supported by Andreessen Horowitz, shares that many of his peers who supported Trump are currently dissatisfied. “None of my friends who voted for Trump are happy right now. Everyone is annoyed,” he notes. The initial expectation among tech professionals was that Trump would adopt a more measured approach and avoid acting recklessly.
### Industry Leaders Voice Their Concerns
Several Silicon Valley executives, who preferred to remain anonymous due to concerns about backlash, echoed this sentiment, particularly regarding the disruption caused by the newly established Department of Government Efficiency. “We were all on board for a more business-friendly presidency, but in the end, the whole industry of crypto and AI got rug pulled,” stated a partner from a prestigious venture firm involved in the Trump administration. He criticized the circle surrounding Trump as self-serving individuals profiting from their political influence.
### Shifting Perspectives in Silicon Valley
Despite the tech industry traditionally leaning liberal, many influential figures have shown support for Trump recently. Prominent venture capital firms, such as Andreessen Horowitz and Peter Thiel’s Founders Fund, alongside tech giants like Mark Zuckerberg and Jeff Bezos, have engaged with the Trump administration. However, recent economic turbulence—characterized by erratic tariffs, widespread layoffs, and a volatile stock market—has left some pro-Trump figures feeling disenchanted.
### Startup Founders Face Economic Uncertainty
Startups are particularly anxious about the current economic climate, with many founders fearing they may struggle to secure funding. “There is a lot of uncertainty right now, and it makes people nervous,” remarks Sara Mauskopf, founder of the venture-backed childcare marketplace, Winnie.
### Crypto Industry Under Scrutiny
Frustration is also mounting over perceived unethical practices in the cryptocurrency space. The tech sector has a complicated relationship with crypto, especially following the collapse of FTX, led by Sam Bankman-Fried. Many tech leaders view cryptocurrencies as dubious schemes that tarnish the industry’s reputation. While the Biden administration has taken a firm stance against crypto, Trump’s administration has welcomed the crypto community. He previously launched a memecoin, $Trump coin, which saw a market cap of $14.5 billion before its value plummeted.
### Controversy Over Crypto Policy
Trump’s administration has made various moves in the crypto space, including appointing venture capitalist David Sacks as the “crypto czar” and holding a Crypto Summit at the White House. However, some critics, like Joe Lonsdale, a co-founder of Palantir, have raised concerns about using taxpayer funds for digital currency initiatives. Lonsdale criticized the administration for favoring specific cryptocurrencies, arguing that it creates an unfair market dynamic.
### Venture Capitalists Question Qualifications
A venture capitalist who actively supports conservative news outlets expressed skepticism about the qualifications of individuals like David Sacks, arguing that expertise in AI and crypto requires specialized knowledge.
### Concerns of Exploitation
One venture capitalist close to the Trump administration accused crypto founders of leveraging their relationship with Trump for personal gain. For example, Steve Witkoff, a long-time Trump ally and special envoy, has reportedly been using his connections to promote his crypto banking platform, World Liberty Financial. Allegations have emerged that Witkoff is pushing foreign governments to back his projects in order to curry favor with Trump.
### Diverging Interests
A conservative entrepreneur remarked that the partnership between Trump and the tech sector was never meant to be long-lasting due to a fundamental disconnect between the two worlds. “Tech people don’t get politicians, and politicians don’t understand tech,” he stated, pointing out that tech professionals often lack a cohesive ideology, while Trump is focused on American-centric deals.
### Optimism Amidst Challenges
Despite the current turbulence, some tech leaders in conservative areas, such as El Segundo, California, remain optimistic about Trump’s transparency and approach to governance. Isaiah Taylor, a founder in the nuclear energy sector, appreciates the public nature of Trump’s dealings, suggesting that scrutiny keeps actions accountable.
### Hope for a Positive Turnaround
Others, like Erik Kriessmann, from the defense tech company Anduril, believe the current struggles are temporary and that Trump’s team is competent and focused on what is best for the nation. Nonetheless, defense tech firms are grappling with the implications of proposed military budget cuts, raising concerns about their future under Trump’s policies.
### Economic Strain on Billionaires
Economist Noah Smith argues that Trump is not favoring billionaires, contradicting popular belief. He suggests that Trump’s policies are adversely affecting some of his wealthiest supporters, like Jeff Bezos, particularly due to tariffs impacting Amazon’s supply chain.
### Conclusion: Uncertainty Ahead for Tech Industry
Smith concludes that the discontent among Trump’s tech supporters signals troubling times for those who expected strong backing from the administration. For now, the tech sector is holding on to the hope that the economic challenges will be temporary and that brighter days lie ahead.
