These motherfukkers are corrupt as fukk
Startup That Got a Seat at White House Roundtable Is Part-Owned by Kushner Family
Startup That Got a Seat at White House Roundtable Is Part-Owned by Kushner Family
Venture-capital firm run by Kushner’s brother partly owns OpenGov, whose CEO last month attended summit with Donald Trump, leaders of Apple, Amazon, Microsoft
Lisa Schwartz
July 14, 2017 11:23 a.m. ET
OpenGov CEO Zachary Bookman, center, spoke at the White House's American Technology Council last month. Photo: Chip Somodevilla/Getty Images
Prominent technology-industry leaders and venture capitalists gathered in the White House’s state dining room last month to discuss tech policy with President Donald Trump in an event that Jared Kushner, the president’s son-in-law and senior adviser, helped organize.
Seated at the
rectangular table alongside the corporate luminaries, university presidents and senior White House officials was a less-prominent figure: Zachary Bookman, the 37-year-old CEO of a small startup called OpenGov.
Mr. Kushner’s brother, through a venture-capital firm, is a part owner of OpenGov, according to government disclosures and data from Dow Jones VentureSource. Until earlier this year, Mr. Kushner owned stakes in the venture-capital firm that he sold to his brother, according to a person familiar with the matter. Mr. Kushner’s connection to OpenGov isn’t widely known.
Many senior Trump administration officials hail from the business world, triggering concerns about potential conflicts between their private interests and public duties. The OpenGov situation—in which a top White House official helped organize a prestigious event where one of the participants was financially connected to his family—is an example of how such potential conflicts can play out.
Scoring a seat at the summit was a milestone for OpenGov, a Redwood City, Calif. company that aims to make government data more user-friendly and has sought business with the federal government, according to its website. OpenGov’s clients are mostly state and local governments—such as Converse County, Wyo. and California Polytechnic State University—looking to upgrade their technology.
Mr. Kushner’s connection to OpenGov is through Thrive Capital, a venture-capital firm run by his brother Joshua Kushner. Thrive is one of four investors that OpenGov lists on its website.
A spokesman for Jared Kushner declined to comment.
OpenGov’s Mr. Bookman was the only chief executive of a small firm among the 18 tech leaders to get a seat at the table with the president. At least one other startup CEO had a second-row seat. OpenGov’s valuation was estimated at $180 million after an October 2015 funding round, according to Dow Jones VentureSource, while the average market capitalization of the 14 publicly traded companies represented at the table—including Amazon.com Inc., Apple Inc., Microsoft Corp.and Alphabet Inc. —is about $250 billion, according to FactSet.
At the event,
a video of which was made public, Mr. Trump thanked his son-in-law for assembling “such a spectacular group of people.” Mr. Bookman also praised Mr. Kushner for his work on tech issues. Mr. Trump said the meeting was focused on ways to use technology to make government more efficient.
Jared Kushner, left, Apple CEO Tim Cook, center, and President Donald Trump at the tech summit last month. Photo: Chip Somodevilla/Getty Images
A spokesman for Thrive said the company “did not play any role in OpenGov’s invitation, and was not aware of its participation in the meeting until after the fact.”
Mr. Kushner didn’t suggest the invitation to OpenGov, according to Matt Lira, who works in his innovation office. “It was my idea to invite OpenGov to our technology leadership listening session,” Mr. Lira said in a statement. He added that he knew OpenGov from working with them in previous congressional roles.
Mr. Bookman said he thinks his company was invited because it is “recognized as an industry leader for our work at the state and local level.” He said the company is mainly focused on winning business from state and local governments, not Washington.
Kathleen Clark, a law professor at Washington University in St. Louis, said the OpenGov situation raised ethics issues. “This seems like a textbook example of cronyism in action,” she said.
Prominent tech leaders were seated at the rectangular table alongside university presidents and senior White House officials. Photo: Chris Kleponis/CNP/Zuma Press
“We always advised staff when arranging summits like this to avoid even the appearance of impropriety or preferential treatment,” said Daniel Jacobson, who was counsel to the White House’s information-technology and digital strategy offices in the Obama administration. He said he probably would have advised staff “not to extend the invite or at least to invite other similarly situated companies.”
The White House declined to comment.
“It’s particularly interesting and remarkable, in that OpenGov does not have any federal customers and this is a federal initiative,” said Kevin Merritt, founder of Socrata, a Seattle-based rival to OpenGov that works with the federal government and wasn’t invited to the event.
Thrive Capital invested in OpenGov in several fundraising rounds dating back to 2013. Jared Kushner was on Thrive’s board at the time, and left in January. OpenGov represents a small part of Thrive’s total investment portfolio, according a person familiar with the matter. The Thrive spokesman declined to say what the value of the investment was.
Mr. Kushner’s government financial-disclosure form shows he had stakes in Thrive. It didn’t identify OpenGov or other holdings.
Ethics rules don’t necessarily require such holdings to be disclosed, but some other senior administration officials, such as Secretary of Education Betsy DeVos,
have listed companies held by venture funds they own.
Mr. Kushner recently filed an amended disclosure form, which is expected to be released publicly soon, according to people close to him. It will disclose assets that Mr. Kushner didn’t report in his original filing in March, including up to $250,000 of Israeli government bonds he sold earlier this year and an art collection he jointly owns with his wife, Ivanka Trump, the people said.
The revised form also will show Mr. Kushner’s interest in a real-estate startup called Cadre, they said.
The Wall Street Journal reported earlier this year that Mr. Kushner is retaining a stake in Cadre and that he hadn’t identified his stake in the company in his initial financial disclosure.
Write to Jean Eaglesham at
jean.eaglesham@wsj.com and Lisa Schwartz at
Lisa.Schwartz@wsj.com
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