A New Blueprint for Venture Capital: The Rise of Anti-Woke Investing and the Parallel Economy
A nascent movement in Silicon Valley is challenging the established norms of venture capital, fueled by a rejection of progressive ideologies and a desire to build a "parallel economy" rooted in conservative values. Firms like New Founding, 1789 Capital, and Azoria Capital are spearheading this charge, attracting both established figures like Marc Andreessen and a growing cadre of disillusioned tech professionals seeking an alternative to what they perceive as the stifling influence of "woke" culture. While still modest in scale, these funds represent a potentially significant shift in the tech landscape, aligning with the broader societal polarization and a growing appetite for businesses that cater to conservative consumers.
At the forefront of this movement is New Founding, a company with ambitious goals extending beyond the realm of venture capital. Founded by Nate Fischer, a Harvard Law graduate and active member of various conservative groups, New Founding initially aimed to build a physical "aligned community" in Kentucky, a haven for those seeking refuge from the perceived "cultural insanity" of the country at large. This vision has expanded to include a venture fund focused on investing in "aligned companies" that share their conservative worldview. This encompasses startups ranging from education platforms promoting "micro schools" to ad-tech companies specifically targeting gun manufacturers. While New Founding’s initial fund is relatively small at $3 million, it has already made ten investments and claims to be fostering the foundations of a parallel economy, offering conservative alternatives to mainstream services deemed too liberal.
New Founding’s agenda extends beyond just financial returns. Their manifesto articulates a desire to challenge the existing "regime" and reshape society through a MAGA, tech-driven, Christian lens. This message resonates with a certain segment of the population, particularly those who feel their values are underrepresented in mainstream institutions. While Fischer insists their rhetoric isn’t a call for violence or unrest, the language employed in their manifesto raises concerns for some, echoing themes of societal collapse and the need for radical change. The firm’s association with figures known for controversial views, including an online personality with a history of posting Nazi imagery, further fuels these concerns.
The anti-woke investing trend isn’t limited to New Founding. 1789 Capital, which recently brought Donald Trump Jr. on board as a partner, has raised over $150 million for its growth equity fund. Their investment strategy focuses on companies that reject social responsibility, globalization, and bureaucracy, a clear departure from the traditional Silicon Valley ethos. Similarly, Azoria Capital has launched an ETF specifically designed to shun companies that support diversity, equity, and inclusion (DEI) initiatives. These funds, while still a fraction of the overall venture capital landscape, are attracting attention and capital from investors who see financial opportunity in catering to an underserved conservative market.
The involvement of prominent figures like Marc Andreessen adds significant weight to this movement. Andreessen, a co-founder of the influential venture capital firm Andreessen Horowitz (a16z), has publicly criticized "woke" agendas, arguing that they stifle innovation and hinder economic growth. His "six-figure" investment in New Founding’s fund, while relatively small for someone of his stature, signals his support for their vision. Andreessen’s techno-optimist manifesto further aligns with New Founding’s worldview, emphasizing the need for unfettered innovation and a rejection of government intervention. His recent shift to the right politically, including his public endorsement of Donald Trump, further cements his position within this emerging ecosystem.
The rise of anti-woke investing also highlights a broader cultural shift within Silicon Valley. While the region has historically been associated with progressive values, a growing number of tech leaders are now expressing disillusionment with these ideals. They argue that "wokeness" has become a hindrance to progress, stifling free speech and creating a hostile environment for those who hold different views. This sentiment is reflected in the growing popularity of platforms like Substack and Rumble, which offer alternative spaces for content creators who feel censored by mainstream platforms. This shift is also evidenced by the presence of prominent figures from mainstream venture capital and defense tech on New Founding’s podcast, suggesting a growing acceptance of their ideas within the broader tech community.
The long-term success of this anti-woke investment thesis remains to be seen. While these funds have generated significant buzz, their actual financial performance has yet to be proven. Critics argue that their focus on ideology over sound business principles could ultimately limit their returns. However, the increasing polarization of American society, coupled with the growing dissatisfaction with traditional institutions, suggests that there is a significant market for businesses that cater to conservative values. The return of Donald Trump to the presidency and the appointment of J.D. Vance as his Vice President further empowers this movement, providing potential access to political influence and further amplifying their message. Whether this translates into sustained financial success and lasting societal change is a question that will only be answered with time.
