Market Overview

Peter Thiel's Support Of Trump Is Bad For Business

Peter Thiel's Support Of Trump Is Bad For Business

Donald Trump's support among Silicon Valley hotshots and deal makers includes Peter Thiel and possibly a few closeted supporters afraid to speak up. If Trump does have any other supporters, then they are likely to remain silent based on how Thiel is being treated.

According to a Bloomberg report, Thiel's support of Trump is hurting his business. At least one startup founder says he regrets taking cash from a Trump supporter and a prominent diversity group is now refusing to work with any company associated with Thiel.

Related Link: Thiel Sees Trump As Ultimate Disrupter

Ryan Peterson, the SEO of a freight software provider called Flexport said in June that he would have "probably not" taken Thiel on as an investor if he knew the billionaire supports Trump.

Ellen Pao, a former partner at Kleiner Perkins Caufield & Byers, said that her diversity group called Project Include will sever all ties with Y Combinator given Thiel's status as a part-time partner. On the other hand, Sam Altman, president of Y Combinator, stands by Thiel's right to support who he chose.

There's More

Arlan Hamilton is a managing partner at Backstage Capital and she passed on taking on a potential investor looking to invest $500,000 because the person refused to disavow and sever the ties this person has with Thiel.

Granted, $500,000 is a tiny amount in Silicon Valley, but Hamilton's one-year-old seed fund only has $5 million in commitments. Despite a single investment of what amounts to 10 percent of commitments, the manager said it was an "easy decision" to reject the offer.

Hamilton tweeted, "Because of my Peter Thiel stance, my company just lost half a million $ in new funding." He added, "Couldn't have Thiel money flowing through our company. Hard problem. Easy decision."

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Posted-In: Arlan Hamilton Bloomberg Donald Trump Ellen Pao FlexportPolitics Media General Best of Benzinga


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