Chris Larsen’s Political Bets Paid Off as Tech Money Reshaped California Races
Silicon Valley’s election results were mixed, but Chris Larsen’s political spending largely delivered. The Ripple chairman directed over $22 million to national politics this election cycle, backing Democrats in key races and supporting moderate, business-friendly candidates and causes in California. Several of his favored candidates won, including Sherrod Brown in Ohio and James Talarico in Texas, whom Larsen supported despite spending by a crypto-industry group to defeat them.
In California, Larsen contributed millions to Grow California, an independent expenditure group he started with venture capitalist Tim Draper. The group spent $24 million backing moderate Democrats, often against more progressive candidates supported by labor. The group looked likely to prevail in nine or more of the 11 legislative districts where it spent, though Eric Lucan lost and one race remained too close to call.
Grow California was part of a broader surge in tech-backed political spending. It and California Leads, with most of its funding from Meta and Google, spent a combined $41 million supporting moderate Democrats. Tech companies and investors put at least $50 million toward legislative races, helping elect at least nine business-backed Democrats. In Assembly District 67, groups spent $9.2 million attacking labor leader Ada Briceño and boosting Mark Pulido, who went on to win a spot in the Legislature.
Larsen also put $5 million into the campaign against a proposed billionaire tax and supported San Francisco Mayor Daniel Lurie’s agenda. His involvement drew protests from labor and anti-tech groups, and some candidates distanced themselves from outside spending on their behalf. Grow California strategist Shaudi Fulp said the group sought to elect legislators who would not simply serve special interests. Critics, including defeated candidate Sarah Rascón, described the spending as corporate influence overwhelming local campaigns.
Tech Billionaires Turned California Races Into a Spending Contest
The election showed how far billionaire and corporate money can reach in California politics. Tech interests spent at least $50 million on legislative races, helping elect at least nine business-backed Democrats and often overpowering progressive candidates backed by labor.
Grow California, funded principally by Ripple chairman Chris Larsen and venture capitalist Tim Draper, spent $24 million backing moderate Democrats. California Leads, with most of its funding from Meta and Google, spent $17 million. Together, the groups accounted for 30% of independent spending on legislative races in a year with record political expenditures.
The gap was stark in Assembly District 67. Groups spent $9.2 million attacking labor leader Ada Briceño and promoting Mark Pulido, while two cardrooms spent $500,000 supporting Briceño. Pulido advanced, and Briceño said the spending against her was decisive. In a Los Angeles-area Senate race, Grow California spent $4.6 million backing Sara Hernandez, while groups supporting progressive challenger Sarah Rascón spent a fraction of that amount. Rascón called it a David-and-Goliath contest against corporate interests.
Larsen also gave $5 million to a group fighting California’s proposed billionaire tax and helped fund efforts against a local tax on highly paid executives. His supporters say the aim is to prevent legislators from becoming beholden to any special interest. But candidates who reject corporate donations still face campaigns shaped by outside groups spending millions on their opponents. The wins for tech-backed candidates suggest that the backlash against billionaire spending did not stop those groups from influencing legislative outcomes.
Pragmatic Democrats Beat the Sacramento Left With Tech Support
Moderate Democrats scored a string of California victories with support from tech investors and companies, challenging the assumption that business-friendly candidates cannot win in deep-blue districts. Grow California, funded by Ripple chairman Chris Larsen and venture capitalist Tim Draper, spent $24 million backing candidates it described as moderates. It looked likely to prevail in nine or more of the 11 districts where it spent.
California Leads, with most of its funding from Meta and Google, added $17 million in spending for moderate Democrats. The two groups together made up 30% of independent expenditures on legislative races. Their strategy reached beyond competitive districts, targeting contests where progressive Democrats backed by labor faced candidates more open to business interests.
Larsen’s spending extended beyond California. He put more than $22 million into national politics, including $4 million to help elect Ohio Democrat Sherrod Brown and $1.75 million for Texas Democrat James Talarico. Both won, even as crypto-industry spending opposed them. In California, Larsen contributed $5 million to a group opposing a proposed billionaire tax.
Critics argue that large outside expenditures can overwhelm candidates and distort local contests. But Grow California strategist Shaudi Fulp said the group wanted legislators who would not act as a rubber stamp for tech, public-sector labor or business. The results gave business-minded Democrats a stronger presence in Sacramento, while also exposing the political cost of outside money: candidates such as Sara Hernandez faced pressure to distinguish their campaigns from groups spending on their behalf.
Reported by The San Francisco Standard, CalMatters.
