Prominent figures from the crypto and venture capital sectors are committing significant financial resources to reshape California’s political landscape. Ripple co-founder Chris Larsen and venture capitalist Tim Draper are backing a new initiative known as Grow California, which aims to support moderate, business-oriented legislative candidates and counter the influence of labor unions in state politics.
The initiative has gained momentum amid growing opposition to a proposed California wealth tax that would target the state’s highest-net-worth residents. The proposal, supported by a major healthcare union, has become a central issue for donors concerned about long-term economic competitiveness, even though Grow California was formed before the tax measure entered public debate.
Funding Strategy and Political Focus
Larsen and Draper each contributed $5 million to seed the effort in late 2025, with Grow California now reporting roughly $40 million in committed funding across political committees and affiliated nonprofit organizations. Larsen has indicated plans to invest up to $30 million over multiple election cycles.
Broader Crypto Political Engagement
California’s Legislature remains firmly controlled by Democrats, with unions playing a decisive role in primary elections. Grow California plans to focus narrowly on select legislative races while avoiding statewide ballot initiatives and the 2026 gubernatorial contest. The strategy reflects lessons drawn from recent crypto-backed political efforts, as digital asset investors increasingly mobilize capital to influence policy outcomes ahead of the 2026 election cycle.
Disclaimer
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