Value Creation First: How VCs Can Drive Portfolio Growth Under Trump’s America First Agenda
The Frontier is Here #4
In this edition of The Frontier is Here, we explore how VCs can strategically drive growth for portfolio companies under the upcoming political regime. Subscribe for free to get early access to our latest insights and in-depth perspectives.
With the latest U.S. presidential election cycle complete, public and private capital markets now have a clearer picture of the regulatory landscape ahead. President Trump’s renewed “America First” policies are expected to prioritize national interests, emphasizing defense, manufacturing, and energy independence. For the venture capital community, this presents a powerful opportunity to align with policy-driven priorities, fostering both value creation for our portfolio companies.
Venture capital is rooted in fostering innovation and helping founders navigate growth. In the context of a Trump administration, VCs can strategically leverage these policy shifts to drive value, mitigate risks, and position startups to thrive. Below are five actionable strategies for VCs to capitalize on the "America First" agenda and supercharge their portfolios.
I. Strengthen Founders’ Connections with Government Agencies in Defense, Energy, and Manufacturing
The U.S. government’s increased focus on economic resilience and national security translates to expanded non-dilutive funding for technologies across critical sectors like defense, energy, and manufacturing. VCs can play a crucial role by introducing founders to startup-friendly government agencies such as the Department of Energy or the Department of Defense. By fostering these relationships, startups can unlock non-dilutive funding and accelerate growth with government backing, positioning them as essential contributors to America’s future infrastructure.
II. Prioritize Domestic Production and Sourcing to Bolster Supply Chain Resilience
An “America First” focus suggests heightened support for U.S.-based suppliers and manufacturers. Although the full effects may take time to unfold, developing a strategic, multi-year plan to source domestically will position companies to take advantage of future tax benefits and other incentives for reshoring. Engaging the board early in this strategic shift not only aligns with national priorities but builds resilient supply chains that protect portfolio companies from international disruptions.
III. Forge Strategic Partnerships Across Portfolios to Pursue Lucrative Government Contracts
The specificity of government contracts often requires companies to expand their core capabilities. By connecting complementary portfolio companies—such as cybersecurity startups with AI firms or blockchain startups with healthcare companies—VCs can enable these businesses to jointly pursue government contracts. A recent example includes a defense-focused partnership between Anthropric, Palantir, and AWS. These synergistic relationships strengthen each company's potential for government engagements, amplifying growth and value creation.
IV. Proactively Model the Impact of Tariffs on International Supply Chains
With the Trump administration’s potential for increased tariffs on imported goods, VCs should work closely with startups to anticipate and model price fluctuations, particularly for mission-critical materials sourced abroad. Companies relying on international suppliers should include these contingencies in financial projections, adjusting cash flow and runway assumptions to prepare for rising costs. This proactive planning ensures that startups can maintain resilience despite cost pressures, keeping them on track for long-term success.
V. Establish an Internal Regulatory-Change Tracker to Stay Ahead of Policy Shifts
As policy changes accelerate, implementing an internal tracker to monitor regulatory developments will enable VCs to offer real-time guidance to portfolio companies. For instance, deregulation in energy or manufacturing could open new avenues for operational efficiency, while emerging regulations in data security may require quick compliance adaptations. A dedicated team or periodic update to track regulatory shifts equips VCs with timely insights, allowing firms to provide proactive advice that keeps startups agile and prepared.
Value Creation First
Startups that will thrive in this climate are led by founders who are resilient, adaptive, and prepared to align with evolving national priorities. Previous administrations drove growth in sectors like healthcare technology and data privacy; today, the focus is on strengthening domestic production, bolstering defense capabilities, and advancing energy independence. With robust government backing for these industries, VCs have a powerful opportunity to ensure that startups become essential contributors to these strategic goals. By putting "Value Creation First," the VC community can reinforce both America’s priorities and its own long-term success.