Within hours of Joe Biden’s decision to bow out of the presidential race, many of the biggest names in Democratic politics - from Hillary Clinton to Gavin Newsom to megadonor George Soros - rushed to join him in backing Vice President Kamala Harris at the top of the ticket.

Some prominent Democratic donors are questioning the hurry.

An open convention next month in Chicago where the party’s best and brightest can make their case would generate excitement among voters and offer a prime-time showcase for Democratic policies, this line of thinking goes. Many of the donors said they would be pleased if Harris wins the contest, but they don’t want the job handed to her.

“That mini bake-off is going to get more press and publicity and coverage than anything in the whole world for the next month,” said Mike Novogratz, the billionaire founder of Galaxy Digital Holdings. “America is ready to change.”

It’s unlikely donors will be the one to direct next steps. That’ll be up to scores of elected Democrats and party officials. But the tension over how to proceed highlights a divide between Democrats and the people who fund their campaigns.

And as Democrats plot their next step after Biden’s historic decision to step aside in the face of discouraging polls and concerns about the 81-year-old’s mental acuity, party insiders, donors and strategists are jockeying to influence who gets picked as his replacement. Some are pushing the idea that other candidates other than Harris may stand a better chance at defeating Republican nominee Donald Trump. 

Donors are also focused on the optics. Democrats were criticised for insulating Biden from any challengers even as concern mounted about his ability to campaign, and some supporters say pushing through Harris’s candidacy without a competitive process would be a bad look.

But many Democratic leaders also acknowledge the risk of bypassing the highest-ranking woman of colour in the party, who has strong appeal for two crucial voting blocs, women and Black voters.

Simply clearing the way for Harris won’t generate public excitement about the Democratic ticket, said one major donor who works on Wall Street, asking not to be identified discussing a sensitive topic. But putting seven to eight candidates on a stage to make their case would gin up significant interest, the person said.

Many prominent Democratic office holders and the party establishment were quick to endorse the 59-year-old vice president, with statements of support from former labor secretary Robert Reich, Pennsylvania governor Josh Shapiro and Senator Amy Klobuchar of Minnesota. Others, such as former president Barack Obama, praised Biden’s decision, but didn’t specifically endorse Harris.

In private conversations, four major Democratic donors who would prefer an open convention said that if Harris is handed the nomination, her choice of running mate will need to help clinch wins in swing states. 

Trump’s pick of Ohio Senator JD Vance helped boost his standing with tech executives in Silicon Valley, many of whom see the former venture capitalist as one of their own. 

The major donors, who asked not to be identified discussing sensitive matters, said the top candidates for the Democrats’ vice-presidential spot would be Michigan governor Gretchen Whitmer, Kentucky governor Andy Beshear, retired navy admiral William McRaven, North Carolina governor Roy Cooper, and Shapiro.

Trump, for his part, zeroed in on Harris, saying in a statement that she’s “just as much of joke as Biden is. Harris will be even worse for the people of our nation”.

“There is no distance between the two,” he added. 

Trey Beck, a Democratic donor and former managing director of investment firm DE Shaw, had called on Biden to step aside after his disastrous debate performance last month, at which the president struggled to defend his record and formulate an effective attack against Trump. Now, he is urging a contest to decide on the party’s standard bearer.

“Any person who emerges from that process is a stronger candidate,” he said. “They will have been vetted by the public, their positions will be out there, and their rhetorical skills will have been sharpened.”

He said if Harris emerges as the victor, “I would walk on hot coals to see her elected as the president.”

Beck, who left DE Shaw in part to focus on Democratic policies and informally advise donors where to give, has given US$66,600 to Biden Victory Fund.

There was already some evidence on Sunday of donor enthusiasm for a new Democratic presidential candidate. Swing Left, a grassroots organisation formed the day Trump was inaugurated to elect Democrats to the House, launched a fund on Sunday for whoever that person is.

In its first 90 minutes, it raised US$75,000 from 700 donors, said executive director Yasmin Radjy. 

“What we don’t want is for the theorising, the pundits and all those conversations about an open process to slow down the deep commitment that grassroots funders have,” she said.

There’s a fundraising advantage to picking Harris: Biden’s campaign still has nearly US$96 million left in the bank, and Harris would have access to that cash since she was part of the ticket. If another candidate emerges, that person would likely have to start fundraising from US$0.

In a clear sign of small-dollar donor support, Harris raised US$46.7 million in initial hours since announcing her candidacy, according to ActBlue, the online giving platform for Democrats.

Soros’ Democracy PAC has given US$10 million to Future Forward PAC and US$5.6 million to American Bridge, which back progressive candidates.

And Jamie Patricof, a film producer and donor, also came out in support of Harris. He hosted a fundraiser for her in 2019 during her unsuccessful effort to seek the nomination. 

“Other people are going to see that she is the best option for the Democrats to beat Donald Trump,” Patricof said in in an interview. “In a debate, she will annihilate Donald Trump.”

The vice president’s supporters are “going to do everything we can do to beat Donald Trump”, he said. “That’s going to include raising money, knocking on doors, making phone calls, and having events. There’s nothing more important to me than this election.”

Rick Caruso, a billionaire Los Angeles real estate developer, said Harris may indeed emerge as the best choice for Democrats, but he nonetheless called for a contest to select the nominee.

“Allowing an open process is consistent with the fundamental strength of our democracy,” Caruso said on a post on X. 

His recent donations include US$50,000 to the Democratic Congressional Campaign Committee in March and US$10,000 to the DNC Services Corp, according to OpenSecrets. He’s a former Republican who registered as a Democrat in 2022, when he ran unsuccessfully for Los Angeles mayor. He spent more than US$100 million of his personal fortune on that campaign.

Novogratz emphasised that anyone the Democrats nominate would be better than the alternative. The investor, who donated to Biden in 2020 but hasn’t given him any cash this year, said supporters must organise quickly once the nominee is chosen.

“There’s a lot that has to happen. Money has to get raised, a campaign has to be stood up, and name recognition has to show up,” he said. Whoever is chosen is “going to look younger, smarter and more appealing than a guy” with felony convictions.

  - Bloomberg