Nazism is not illegal in the US. Copyright infringement is. Easier to stand up for your principles if government doesn't threaten you directly.
We don't really need to wonder why we have octogenarians with zero clue how the Internet works in power (every Congressional investigation about anything tech is enough meme fodder for the rest of the year)... the tech industry might be absurdly large in financial terms, but it is a complete joke in political lobbying.
[1] https://thehill.com/lobbying/3720141-here-are-the-biggest-do...
That said most VCs aren't progressive, they're libertarian (until their bank crashes).