In the wake of the recent election, Silicon Valley’s tech elite is buzzing with anticipation over the potential economic benefits of a second Trump presidency. Many venture capitalists (VCs) and entrepreneurs who previously supported his campaign are now envisioning a future that could greatly favor the startup ecosystem. With hopes that the new administration will roll back regulations and offer a more favorable environment for tech, cryptocurrency, and mergers and acquisitions (M&A), the tech industry is gearing up for what they believe could be a boom in innovation and investment.

Venture capitalists like Jason Calacanis, a well-known investor and co-host of the All-In Podcast, are vocal about the possibilities. Calacanis was quoted saying, “I’m going to be printing money in a Trump administration,” emphasizing the expected surge in M&A deals and IPOs that could benefit many startups. Investors in the cryptocurrency sector, such as Tatiana Koffman from Moonwalker Capital, are particularly optimistic, predicting a flood of new capital into funds and startups as a result of Trump’s victory. Many industry leaders believe that the current regulatory landscape, which is often seen as unclear or unfriendly to crypto, will shift in a more favorable direction under Trump’s leadership.

Jacob Helberg, an adviser to Palantir Technologies and a supporter of Trump, echoed these sentiments, describing the mood at Trump’s Mar-a-Lago estate as "electric." Speaking to Bloomberg, he pointed to a new sense of optimism among VCs and entrepreneurs who see the potential for "bold moonshot projects" in areas like space technologies and government reform. With the promise of clearer cryptocurrency regulations, less stringent tax policies on capital gains, and a more lenient stance on antitrust laws, many in the tech world are hopeful that the Trump administration will create an environment where startups can flourish.

However, while the enthusiasm is palpable among Trump’s supporters, there are notable voices of caution. Some venture capitalists who backed Trump’s opponent, Kamala Harris, such as Reid Hoffman and Vinod Khosla, remain skeptical about the impact of his policies on the tech industry. Peter Thiel, a high-profile Silicon Valley investor who supported Trump’s 2016 campaign, later expressed frustration with the administration’s approach, particularly on issues like trade tariffs, which he felt could harm young tech companies.

Despite these mixed reactions, the influence of Trump’s supporters in Silicon Valley cannot be ignored. Palmer Luckey, the founder of Anduril Industries, a defense tech company, and a long-time Trump backer, mentioned that he was in close contact with the transition team to help select key figures for positions, including the next Secretary of Defense. While Luckey did not confirm whether figures like Elon Musk or other Trump mega-donors were potential candidates, he expressed satisfaction with the list of people being considered for the administration.

The emerging support for Trump within Silicon Valley is part of a broader trend. Traditionally, the tech industry has leaned heavily toward Democratic candidates, but this election saw a significant shift. Record-setting contributions from Silicon Valley to Trump’s campaign and a surge of endorsements signaled a change in the political dynamics of the industry. In fact, some VCs who did not explicitly endorse Trump still believe that his presidency could provide favorable conditions for the growth of startups and innovation.

Looking ahead, some tech leaders are already setting their sights on the future. Many in the industry are focused on the potential for a Trump presidency to set the stage for a new generation of leaders, including J.D. Vance, the Ohio senator and former venture capitalist. Vance, a strong proponent of Trump’s policies, has garnered significant support within conservative tech circles, with figures like Keith Rabois and Delian Asparouhov of Founders Fund voicing their enthusiasm for his political ambitions.

While the future remains uncertain, it is clear that the tech industry, particularly venture capitalists and startup founders, see immense opportunities in the Trump administration. Whether these opportunities will materialize into real growth remains to be seen, but for now, the mood in Silicon Valley is one of cautious optimism, with a strong belief that the next few years could bring transformative changes to the industry.

FORTUNE.COM