Photo: Evan Vucci/AP
Two months into President Donald Trump’s second term, Silicon Valley, which partially supported his administration, is in a state of deep disappointment. Leading businessmen and investors are complaining about chaos in the government, unpredictable economic decisions, and questionable manipulations with cryptocurrencies, Business Insider reports.
“Everyone I know who voted for Trump is annoyed now. They expected more stability, but all they got was chaos,” says Reggie James, founder of the media company Eternal, which is backed by one of the most famous venture capital funds, Andreessen Horowitz.
The disappointment of tech giants
According to several tech executives who spoke to journalists anonymously, the policy of the Department of Government Effectiveness (DOGE), headed by Elon Musk, is the most dissatisfying. The new approach was expected to make government processes more technologically advanced, but as a result, government agencies are working even less predictably.
“We were convinced that it would be a business-friendly government. But the reality is different: the chaos in the crypto sector, massive dismissals of officials and stock market volatility are making investors lose confidence,” said one of the venture capital partners advising the Trump administration.
Trump and Silicon Valley’s alliance under threat
Despite the fact that Silicon Valley generally supported the Democratic Party, many influential investors in the tech sector hoped that Trump would provide a stable business environment. Large venture capital funds such as Andreessen Horowitz and Peter Thiel’s Founders Fund became his supporters.
Mark Zuckerberg and Jeff Bezos were among the famous billionaires who attended Trump’s inauguration on 20 January. However, after the introduction of unpredictable tariffs, economic sanctions and problems with cryptocurrencies, support among entrepreneurs began to fall sharply.
“Many startup founders are preparing for the economic downturn. Investors are not sure whether they will be able to continue funding due to the unstable market situation,” says Sarah Mauskopf, founder of the childcare platform Winnie.
Cryptocurrency scandal
The Trump administration’s actions in the field of cryptocurrencies have caused particular outrage. On the eve of the inauguration, he launched his own memecoin, $Trump Coin, which reached a market capitalisation of $14.5 billion, but quickly lost most of its value, dropping to $2 billion.
“People working in the crypto sector are using their proximity to Trump for personal enrichment,” says one investor who works with the administration.
Suspicions of abuse of power
Another high-profile scandal involves Steve Witkoff, who was appointed by Trump as the US Special Representative for the Middle East. The media reports that he is using his position to promote his own financial interests in the crypto sector.
“Vitkoff is calling other governments and convincing them to invest in cryptocurrencies linked to the Trump administration. It looks like a pure fraud,” said one venture capitalist.
Is there a future for the Trump-Silicon Valley relationship?
Experts believe that the alliance between Trump and the tech elite is beginning to show serious cracks. “People in Silicon Valley have never had a clear political ideology. They want global business, while Trump is only interested in the US market. It ‘s a conflict of interest that was bound to erupt sooner or later,” concludes one influential venture capitalist.
Will Trump be able to maintain support for the tech sector, or will he lose allies among innovators? This question remains open.
