Founders are adopting a proactive approach to prevent their traders from accepting cash from countries with sanctions in place, such as China, Russia, Iran, and Cuba.
More than 100 real estate professionals have signed the Clear Capital Certification, affirming that they will not accept any form of compensation from foreign entities or individuals deemed hostile to US interests. Several notable companies that have partnered with us include Marlinspike Companions, Snowpoint Ventures, and others. To mitigate risks stemming from US adversaries capitalizing on American success, it’s essential we proactively take steps to prevent such exploitation; one effective approach involves publicly committing to the Clear Capital Certification, thereby fulfilling our responsibility as a community.
Created by Future Union, a leading advocacy group focused on protecting individual rights against international meddling in personal affairs. The pledge warns that unaccountable applications of science can cast a shadow over our world, sowing seeds of authoritarianism, spreading misinformation, and cultivating divisions.
For nearly three years, Internews’ government director Andrew King has been deeply engaged with the Pledge; yet, his concerns about Chinese influence date back even further. He remembered engaging in lengthy discussions with a close acquaintance from the Division of Protection about the detrimental impact of the China operation on the US, as well as its influence on business capital and private equity – through cash and other incentives – to gain access to critical technologies.
The King suggested that when an agency employs Chinese-language traders, it is plausible that these professionals – subsequently the Chinese authorities – might gain access to confidential information regarding portfolio companies.
In the realm of enterprise capital, a growing concern is the notion that, in reality, this hypothetical threat may materialize. In September, the FBI was investigating Hone Capital, a California-based enterprise capital agency, for allegedly sharing information with its Chinese investors. In February, a significant month for aviation, five U.S. Funding companies that invest in Chinese-language corporations, allegedly leveraging these investments to support China’s naval expansion and facilitate its systemic human rights violations.
Representative John Moolenaar, chairman of the House China Caucus, praised the commitment. “United States national security and economic prosperity are imperiled when U.S. Corporations squander funds on the Communist Party’s most formidable rival, or they roll out the red carpet for Beijing-backed traders onto their boards,” he declared in a statement. As a result of the efforts by patriotic traders, a standardised Clear Capital Certification will be available, allowing individuals to assess their investment performance.
It’s no accident that many companies on this list invest in protection technology startups. For companies in the defense sector, dealing with cash linked to sanctioned nations poses a significant risk, potentially compromising their ability to conduct business with the Department of Defense.
Among the approximately two dozen firms that have committed to the initiative, several prominent venture capital organizations noticeably lacking include Andreessen Horowitz and Founders Fund, whose substantial resources are not devoted to cybersecurity efforts. Although neither agency indicator nor open letter resembles the pledge, it is worth noting that a Founders Fund representative explicitly stated that their organization does not accept funding from any nation included in the pledge. Up until now, accomplice Delian Asparouhov had been using the Chinese phrase’s capital letter “traitorous.”
In an op-ed published in The Wall Street Journal last year, Andreessen Horowitz partners Katherine Boyle and David Ulevith explicitly outlined their position. “While some American investors previously bet on adversarial nations like China, it’s now evident that they miscalculated their wager.”
That would have been a pointed jab at one of Andreessen Horowitz’s longstanding rivals, Sequoia Capital, which was once known for its significant Chinese investment arm until it decided to spin out that unit as a separate entity.
While the pledge may seem appealing, its lack of rigorous verification process raises concerns about authenticity and accountability among participating companies. Although an agency may confirm that its restricted partners are not primarily based in China, there remains a possibility that these partners could still receive funding from Chinese entities.
The King emphasized that this commitment marks a crucial first step, potentially paving the way for further measures that might involve independent verification of the agency’s trading partners or another form of certification that scrutinizes the limited number of approved collaborators.
He hopes that even a voluntary commitment will encourage companies to remain accountable. “The self-attestation process is publicly acknowledged,” he declared. “There is a significant risk of reputational damage and harm if you were to testify later, knowing that your peers or others might discover the truth was not as initially presented.”
