Venture Capitalists Compete for Influence Over DOGE and Trump Committees

Given Elon Musk’s prominent involvement in Donald Trump’s transition team, Musk’s peers, numerous of whom are venture capitalists from Silicon Valley, are reportedly being recruited to assist.

For example, the VC firm Andreessen Horowitz, particularly its co-founder Marc Andreessen, is frequently mentioned. He, in company with Antonio Gracias and Joe Lonsdale, are said to be invited to aid Musk’s advisory committee, the Department of Government Efficiency, or DOGE, which is investigating methods to surmount the technological obstacles of gathering data regarding federal initiatives, reported the Washington Post on Sunday.

They are among a select group of other Silicon Valley magnates being considered.

Gracias co-founded Valor Equity Partners, which has achieved success through supporting Musk’s ventures over the years, like SpaceX and Tesla (where he served on the board of directors from 2007 until 2021). Lonsdale co-founded VC firm 8VC and actively backs defense tech companies like Anduril as well as other government tech, such as financial software provider OpenGov. Lonsdale previously worked with billionaire VC Peter Thiel and was instrumental in co-founding Palantir. Since about 2022, Andreessen Horowitz has been a substantial investor in SpaceX and continues acquiring more shares when possible, TechCrunch previously noted, and Andreessen has openly endorsed Musk.

The DOGE committee aims to suggest program cutbacks and reduce federal employee numbers, Musk and previous presidential candidate Vivek Ramaswamy stated in a Wall Street Journal article last week. They also anticipate legal resistance, they noted. The group intends to start a podcast in the near future, reports the Washington Post.

Simultaneously, Andreessen Horowitz is reportedly being considered for a role on an anticipated Trump administration crypto advisory council. This council will include numerous executives from the crypto sector aiming to assist the U.S. in shaping crypto policy, industry leaders told Reuters last week. Brian Quintenz, a16z crypto’s head of policy, is already advising Trump’s team, Reuters reports.

Another venture capitalist under discussion for a position on this committee is Paradigm, an investment firm established by Fred Ehrsam, a former co-founder of Coinbase. Paradigm focuses on crypto/blockchain investments. Although Coinbase is not a VC firm, it funds its own corporate division, Coinbase Ventures, and is also eager to join the committee, sources revealed to Reuters.

Meanwhile, Michael Kratsios, a former Thiel protege who served as chief technology officer during the initial Trump administration, has reportedly been assigned to handle tech policy for Trump’s transition team, Politico noted last week. Kratsios is recognized for drafting Trump’s 2020 executive order promoting AI investment. Before his government tenure, he worked for Thiel Capital. However, Kratsios is not a venture capitalist at present. Since 2021, he has been at AI firm Scale AI, according to his LinkedIn profile.

Lonsdale and a16z did not immediately provide a response to requests for comments. They also did not address inquiries for comments by the Washington Post.

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