JD Vance: VC to VP?

Last week, Donald Trump announced JD Vance as his running mate for the 2024 presidential election. While Vance is widely known for his bestselling memoir “Hillbilly Elegy” and his current role as a U.S. Senator from Ohio, many may not be aware that he spent a significant portion of his career in the world of venture capital.

From Appalachia to Yale and Beyond

Vance’s journey began in Middletown, Ohio, where he was raised in a blue-collar family. After serving in the Marine Corps, he attended Ohio State University and later Yale Law School. It was at Yale that Vance first connected with Peter Thiel, his future employer and supporter, at a speaking event. Following his graduation from Yale in 2013, Vance clerked for a federal judge and worked briefly for a corporate law firm and in business operations for a biotech startup.

The Move to Silicon Valley

In 2016, Vance made a pivotal career shift, moving to San Francisco to try his hand in tech and VC. This move coincided with the release of “Hillbilly Elegy,” which quickly became a national bestseller and thrust Vance into the public spotlight. Since Trump’s announcement, sales of the book have pushed it to #1 on the Amazon list, and the movie rendition sat as high as #2 most watched on Netflix.

Mithril Capital: First Steps in VC

Vance’s venture capital career began as Principal at Mithril Capital, a firm co-founded by Peter Thiel. According to reports from former colleagues, Vance’s time at Mithril was marked by frequent absences due to book promotion activities. Vance himself acknowledged this, stating, “How useful I’ve been on that front is probably debatable.” He left the firm after less than a year, reportedly without closing any deals.

Revolution: Focus on Heartland Investments

In 2017, Vance joined Revolution, a venture capital firm founded by AOL co-founder Steve Case. At Revolution, Vance focused on the “Rise of the Rest” seed fund, which aimed to invest in startups outside traditional tech hubs. During his time there, he led investments in several companies:

  1. AppHarvest: An agricultural technology company (Public via SPAC; followed by bankruptcy in 2023)
  2. Engage Talent: A recruiting company (later acquired by Workforce Logiq in 2019)
  3. DemandJump: A marketing strategy company
  4. Aatmunn: An industrial technology firm focused on workplace safety
  5. The Minte: A housekeeping company (later acquired)
  6. Chassi: An AI-powered business analytics platform
  7. Pryon: An enterprise AI company
  8. Brace: A mortgage servicing software company
  9. Lumenari: A materials science company (now defunct)
  10. Branch: An insurance tech company
  11. Freightwaves: A freight market analytics and media company
  12. Neighbor: A peer-to-peer storage marketplace
  13. Losant: An enterprise IoT platform

As part of his role at Revolution, Vance took on board positions at some of the fund’s portfolio companies. Notably, he served on the board of AppHarvest until 2021, shortly before the company went public via SPAC. He also joined the board of Pryon, the enterprise AI company, further demonstrating his involvement in the fund’s investments.

Steve Case spoke positively of Vance’s contributions, stating, “JD’s understanding of the challenges facing small-town America, combined with his experience in Silicon Valley, makes him uniquely positioned to help entrepreneurs in the heartland.”

However, some investors questioned the unique value Vance brought to the fund. One investor told Business Insider, “I don’t recall anyone at Rise of the Rest bragging about something JD Vance brought to the fund.”

Narya Capital: Founding His Own Firm

In 2019, Vance co-founded Narya Capital, raising over $93 million from investors including Peter Thiel, Marc Andreessen, and Eric Schmidt. Narya aimed to invest in startups in underserved areas, particularly in Ohio and the Midwest. The firm made investments in several companies, including:

  • Rumble: A video platform
  • Spotlight Oral Care: A dental health company
  • Beren Therapeutics: A biotechnology company
  • Hallow: A prayer and meditation app
  • AcreTrader: An online farmland investment platform
  • Strive Asset Management: Vivek Ramaswamy’s asset management firm
  • And others

Narya continued to raise funds and make investments after its initial round. In late 2022, the firm filed paperwork for a second fund with a target of $125 million. Narya has also invested in companies like Joyn Bio, an agriculture technology company, and Layer1, a Bitcoin mining and infrastructure company. The firm has gone on to close a total of 18 investments, including its ValueBase deal last month.

Political Career and Continued Investments

Vance entered politics in 2021, running for and winning Ohio’s U.S. Senate seat. His campaign received significant backing from tech industry figures, including:

  • Peter Thiel: Contributed $15 million to a super PAC supporting Vance
  • Marc Andreessen: Donated to Vance’s campaign
  • David Sacks: Contributed $1 million to a PAC backing Vance

Even after entering politics, Vance continued to make personal investments in various startups. His financial disclosure report from October 2023 shows holdings in over 100 companies, including Prime Unicorn Index component Anduril, a defense technology company founded by Palmer Luckey.

Conclusion

While relatively brief, JD Vance’s venture capital career played a significant role in his professional trajectory. It provided him with connections in the tech industry and experience in startup investing, which he has leveraged in his business and political endeavors. As he steps onto the national political stage as a vice presidential candidate, his time in venture capital offers an interesting lens through which to view his approach to business, technology, and economic development.