Bob Ras is the co-founder and GP at CoreNest Capital.
A monumental shift is underway in the U.S. tech landscape, and an unlikely duo is driving it: the Trump administration’s pro-business agenda and Elon Musk’s push for innovation. From AI to blockchain to space exploration, this convergence is sparking a new tech boom—one that’s flooding startups with capital and ambition.
As any seasoned entrepreneur or investor knows, however, booms come with risks as much as rewards. How can startups and investors ride this wave without wiping out? Let’s break it down, sector by sector, with a clear-eyed look at the opportunities—and the pitfalls—lying ahead.
AI: A Funding Frenzy With Strings Attached
Venture capital in the AI sector is pouring in at record levels. U.S. funding hit $55.6 billion in Q2 2024 alone, with AI largely driving a 47% leap due to heavy hitters like xAI, which snagged $6 billion. The Trump administration decided to roll back previous AI policies in hopes of a faster track to market and a shot at outpacing global rivals like China. For startups, all of this means more cash to play with and a chance to leapfrog into healthcare, cybersecurity or autonomous systems.
The flip side is that all of this money comes with a catch. The influx of VC attention is cranking up the pressure on AI founders to deliver—quickly. Aggressive timelines and sky-high expectations mean startups need to beef up their infrastructure yesterday, hiring top talent and scaling systems to keep pace.
Then there’s the elephant in the room: Rushing to market could amplify AI’s existing headaches like hallucinations and biases. Just ask anyone who’s watched an AI confidently spit out nonsense—or worse. Ethical missteps aren’t just PR problems; they’re credibility killers. Startups serious about thriving in this space should invest in governance frameworks early (it’s like insurance against future scandals) and focus on sustainable growth rather than chasing flashy, short-term wins.
Blockchain: Clarity Opening Doors, But Stability Remaining Elusive
Over in blockchain land, things are finally looking less like the Wild West. The Trump administration’s January 2025 executive order carved out clearer rules, giving crypto startups room to scale without dodging regulatory bullets. Back in 2016, exchanges were already begging for this kind of clarity, and now it’s paying off.
VCs are jumping in, backing blockchain ventures in finance, cybersecurity and decentralized apps (dApps)—a trend that’s been building since the early days of Coinbase and Ripple. Blockchain is shedding its speculative skin and stepping into mainstream legitimacy.
Yet for all of the promise, turbulence exists beneath the surface. Even with friendlier regulations, the legal landscape is still shifting, and startups need to bake compliance into their DNA to stay ahead of the curve.
Additionally, more VC cash means more scrutiny; founders can’t just coast on hype anymore. They have to prove their tech solves real-world problems, or investor confidence could dry up fast. Startups should engage regulators proactively and double down on practical use cases—think supply chain tracking or secure data sharing—over chasing the next crypto moonshot.
Space: Rockets Going Up Amid Increased Competition
Deregulation is opening doors for space startups to snag contracts in satellite networks and lunar exploration. SpaceX is leading the charge with reusable rockets, but Blue Origin and Rocket Lab aren’t far behind, pushing private launch capabilities to new heights. Meanwhile, NASA’s Artemis program—aiming for a 2027 lunar landing—is supercharging public-private partnerships. It’s a golden era for space entrepreneurs with big ideas and deep pockets.
That said, the sky’s getting crowded. More players mean fiercer competition, and standing out demands cost-efficiency and reliability—table stakes for winning those juicy government contracts.
Then there’s the growing chatter about space sustainability. Debris is piling up out there, and regulators won’t ignore it forever. Startups need to get ahead of this, designing sustainable launch systems now to dodge future headaches.
The winners will align their missions with national security priorities while keeping an eye on commercial demand—think satellite internet or lunar mining.
The Playbook: Winning In A High-Stakes Game
This is an era of opportunity, but it’s not for the faint of heart. As a founder, you should grab the funding while it’s hot, but don’t let it burn a hole in your pocket—you need to focus on building something that lasts. Get cozy with policymakers early; waiting for regulators to bite you later is a rookie mistake. In AI and blockchain, especially, don’t skimp on ethics—it’s your shield against long-term blowback.
For investors, it’s about betting on the jockey, not just the horse. Back founders who can execute rather than just dream big, and push them to embrace compliance and sustainability. Diversify your portfolio—AI, blockchain and space are starting to overlap in wild ways like AI-driven satellite networks.
Meanwhile, industry leaders need to stay nimble. Policies can flip overnight, so lean into those government tie-ups where national goals meet private innovation. If you want to lead, not follow, build trust—be the company that gets “responsible tech” right.
The Bottom Line
This is a defining moment for U.S. tech. AI’s scaling fast, blockchain’s going legit and space is no longer sci-fi. This administration is pouring fuel on the fire with policies and vision that could cement America’s spot at the top, but booms don’t last forever and the stakes are high. Navigate it right by balancing ambition with caution, and you won’t just survive the wave; you could shape what comes next.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?