Donald Trump officially selected JD Vance as his running mate at the 2024 Republican National Convention today, overlooking other frontrunners like Doug Burgum and Marco Rubio. Vance has previously worked in the venture capital (VC) industry and has backed cryptocurrencies. Here’s what his candidature means for these and other businesses in the US.

Vance rose to fame with his 2016 book, Hillbilly Elegy: A Memoir of a Family and Culture in Crisis, which was lauded as an important window into the mind and background of the average Trump voter. The 39-year-old Ohio Senator’s rise in MAGA circles follows a dramatic shift from his earlier criticism of Trump to becoming one of his most vocal supporters. Reportedly, the relations between the two started to get better in 2021 following a meeting in Mar-a-Lago. Later, Tucker Carlson, Elon Musk, and other key allies reportedly made direct appeals to Trump on his behalf.

Vance’s candidature for Trump’s VP candidate is not too surprising though given the similarity in the policies that they advocate. They both are on the same page when it comes to US energy independence, cracking down on immigration at the Southern border, abortion rights, as well as tariffs and similar tactics to rebuild manufacturing in the country.

Importantly, Vance was also the biggest supporter of cryptocurrencies on Trump’s shortlist, which makes him the apt running mate for Trump who proclaimed himself as the “crypto president.” Finally, Vance’s close ties with Peter Thiel and other billionaires will help raise much more money for their campaign.

JD Vance Has Worked in the VC Industry

JD Vance started his career at a corporate law firm in San Francisco but soon moved to the private equity industry and joined Peter Thiel’s venture capital firm, Mithril Capital. In 2017, he became the managing director at Steve Case’s Revolution as a managing director where he helped launch Rise of the Rest Seed Fund, an early-stage fund.

The fund focused on markets outside California, Massachusetts, and New York which account for the bulk of startup funding. While at Revolution, Vance led investment into a Michigan-based startup Aatmunn that develops wearable devices to aid on-the-job safety for construction workers.

Vance then created his own venture capital company, Narya Capital, in 2019. Among others, the fund was backed by Scott Dorsey, Peter Thiel, Eric Schmidt, and Marc Andreessen. He left the VC industry in 2022 when he was selected for the US Senate.

Vance Might Not Have Good News for the VC Industry

Vance has also backed strong enforcement of antitrust regulations and has been all praise for Trade Commission chair Lina Khan calling her one of the Biden administration officials “doing a pretty good job.” Khan is not particularly popular among businesses – especially Big Tech companies – given her strong negative bias against tech giants. She is especially unpopular with most Republicans, who generally vote for whatever is best for businesses and the rich in this country.

While Vance is a former VC guy, his views on antitrust don’t bode well for M&A activity in the US. As a leading New York dealmaker said Vance as Trump’s VC nominee “would not be reassuring to the business community, and could signal an anti-M&A mindset for the second Trump administration.” It’s important to note that this would mostly only affect perhaps 0.1% of the richest people in this country, though this may become a problem when it comes to raising campaign cash.

Meanwhile, not all agree that Vance’s candidature is bad for businesses, and Mark Kvamme, an Ohio-based venture capitalist who has raised money for Vance, described him as a “business guy” and a “clear thinker”.

What Could Vance Candidature Means for Businesses?

Borrowing from Trump’s “America First”, Vance wants a US foreign policy that puts America first which in other words is an isolationist policy, unlike Joe Biden who has tried to further the US’ relationships abroad to some degree. Vance has also opposed more US aid to war-torn Ukraine (though he has been a fervent supporter of Israel).

Vance has also championed the cause of the white American working class in the Rust Belt which arguably is one set of people who have been at the receiving end of the offshoring of manufacturing jobs and are seen as among the biggest Trump supporters.

As a financial services lobbyist, said, “He (Vance) represents something in the country that the coastal elites and big business have taken too long to recognize.” Vance supports a protectionist trade policy like Trump who has proposed a 10% tariff on all US imports even though it would have severe consequences on the economy, especially for those who are less well off.

Trump’s Presidency Could Fuel Inflation

Most experts agree that the tariffs are a tax on US consumers and could lead to higher inflation. Reportedly, one of the measures that President Joe Biden was considering to lower inflation was to relax the 25% tariff that Trump had imposed on most imports from China.

Given the convergence between Trump’s and Vance’s policies, there are fears that their policies could fuel global inflation at a time when central banks are at the cusp of addressing the menace.

Michael Metcalfe, head of macro strategy at State Street Global Markets, told CNBC’s “Squawk Box Europe” that “There’s a bigger risk that Trump’s policies will be more inflationary in a second term than they would have been in the first.”

Furthermore, an escalation in the US-China trade war (which could result from Trump and Vance becoming the US President and Vice President respectively) would be the last thing that businesses – especially those with a significant exposure to China – would want.

Trump Administration Could Be Crypto-Friendly

Last year, Vance introduced a bill that aimed to protect banks from the regulatory pressures that led to them cutting their relationship with crypto firms to avoid heavy compliance burdens or undesired impact on their balance sheet.

He was also reportedly gearing up to introduce a new bill that could dramatically reshape the regulatory landscape for digital assets.

Vance’s filings showed that he has invested in cryptocurrencies and held between $100,000-$250,000 in Bitcoin. Vance has a constructive view of digital assets which coupled with Trump’s positive view of cryptocurrencies could mean a Trump administration – if it is elected – could be friendlier to cryptos.