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The story of Obama’s success is very much a story about money. It provided his initial credibility. It paid for his impressive campaign operation. It allowed him first to compete with, and then to overwhelm, the most powerful Democratic family in a generation—one that understood the power of money in politics and commanded a network of wealthy donors that has financed the Democratic Party for years.
What’s intriguing to Democrats and worrisome to Republicans is how someone lacking these deep connections to traditional sources of wealth could raise so much money so quickly. How did he do it? The answer is that he built a fund-raising machine quite unlike anything seen before in national politics. Obama’s machine attracts large and small donors alike, those who want to give money and those who want to raise it, veteran activists and first-time contributors, and—especially—anyone who is wired to anything: computer, cell phone, PDA.
Here’s another thing: he is doing it almost effortlessly. That is to say, in an era when the imperative for campaign dollars demands more and more of a politician’s time and lurks behind so many recent scandals (including the auctioning-off of the Lincoln Bedroom), Obama has raised more money than anybody else without plumbing ethical gray areas or even spending much of his own time soliciting donations. During the month of February, for example, his campaign raised a record-setting $55 million—$45 million of it over the Internet—without the candidate himself hosting a single fund-raiser. The money just came rolling in.
Obama’s campaign is admired by insiders of both parties for its functional beauty—not just admired but gawked at, like some futuristic concept car leaking rocket vapor at an auto show. Obama’s campaign has made a similar leap in how it has applied technology to the practices of raising money and organizing, and it is already the clear model for everyone else.
To get a better sense of why it has succeeded, I opted to undergo the full tech immersion while reporting this piece, and soon had Obama ring tones on my phone, new networks of online “friends,” text-message updates from the campaign, and regular e-mails from its manager, all gently encouraging me to give money, volunteer time, bring in new friends, and generally reorient my life in ways that were made to seem hip and fun—and inexorably aimed at the greater glory of Barack Obama. How Obama arrived at this new model for campaigning is a tale of foresight and circumstance, his campaign’s enterprise and his opponent’s shortsightedness, and it has as much to do with Silicon Valley as it does with Washington politics.
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Barack Obama was new to most Americans when he entered the presidential race, in February 2007. But he was familiar to Silicon Valley in at least one way: like a hot Internet start-up in the glory years, he had great buzz, a compelling pitch, and no money to back it up. He wasn’t anybody’s obvious bet to succeed, not least because the market for a Democratic nominee already had its Microsoft.
This being Silicon Valley, however, Obama was quickly embraced. A few days before Obama declared, John Roos hosted a fund-raiser at his home, attended by Gorenberg and many other prominent figures. This sent an important signal to the community and added to Obama’s local mystique. “There is a lot of good feeling for the Clintons in California,” says Peter Leyden, the director of the New Politics Institute in San Francisco, a tech-focused think tank that is neutral in the presidential race. “But once the community here experienced Obama, that started to break up really quickly.”
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Furthermore, in Silicon Valley’s unique reckoning, what everyone else considered to be Obama’s major shortcomings—his youth, his inexperience—here counted as prime assets.
I asked Roos, the personification of a buttoned-down corporate attorney, if there had been concerns about Obama’s limited CV, and for a moment he looked as if he might burst out laughing. “No one in Silicon Valley sits here and thinks, ‘You need massive inside-the-Beltway experience,’” he explained, after a diplomatic pause. “Sergey and Larry were in their early 20s when they started Google. The YouTube guys were also in their 20s. So were the guys who started Facebook. And I’ll tell you, we recognize what great companies have been built on, and that’s ideas, talent, and inspirational leadership.”
This was the dominant refrain as I traveled around the Valley. From a policy standpoint, there are many reasons for tech-minded types to support Obama, including his pledge to establish a chief technology officer for the federal government and to radically increase its transparency by making most government data available online. “Barack recognizes that people in Silicon Valley are not just talking about a set of technical questions,” Lawrence Lessig, the Stanford law professor and noted Valley demigod, told me. “It’s a broader generational issue of how to architect and orient the government on important issues, from privacy to security to competition, in ways that open up the process to everyone.”
