Venture Capital vs. Oil: Funding Clean Tech
Thursday, February 14th, 2008 running time 15:45
Meet Vinod Khosla, co-founder of Sun Microsystems, a long time venture capitalist and a man determined to help foster clean energy technologies and end our dependence on foreign oil.
Vinod Khosla, the VC mogul states, "The nature of our fund is that we don't make plans. We fund everything that is interesting and we fund nothing that is uninteresting. Because we don't have a quota to make"
Vinod Khosla grew up dreaming of being an entrepreneur, despite growing up in an Indian Army household with no business or technology connections. Since age 16, when he first heard about Intel starting up, he dreamt of starting his own technology company. Vinod Khosla started Khosla Ventures in 2004. Two-thirds of Khosla Venture's investments are focused on cleantech and the other third is concentrated on web, mobile startups. In 2007, the firm had 14 clean tech deals valued at $68.4 million. Vinod is passionate in the cleantech industry and believes proper analysis will ultimately lead to healthier environment.
What's the best way to help the environment and lower carbon reduction? "They should change their light bulbs. That saves them money and its a negative cost per a ton of carbon. While a Toyota prius is $90 to reduce a ton of carbon."
Hitlines:
1 - Coal-Powered Ethanol: A Dirty Shade of Green:
The ethanol industry must be in a pretty bad state if cheap and dirty coal plants need to be built to sustain it. The Oil Drum and Biofuels Digest say that two coal-powered plants are being proposed in Iowa, partly to provide power for the state’s ethanol producers. Everyone knows that corn-based ethanol is far from sustainable, but it doesn’t get much dirtier than that.
2 - Infinia Raises $50M for Stirling Solar:
Infinia, a company that has spent the past 25 years working on stirling engines, just announced that it has raised a Series B round of $50 million. Why is it raising such a sizable round now? The company, which is backed by a who’s who of entrepreneur investor firms in Vinod Khosla’s Khosla Ventures, Bill Gross’ Idealab and Paul Allen’s Vulcan Capital, says it will start selling its stirling engine product for solar thermal power plants by the end of this year and will use these funds to make that happen.
Highlights
science technology
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6:21, 6:21
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Silicon Valley
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3:04, 3:04
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national news
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0:36, 0:36
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clean energy
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2:08, 2:30, 2:08, 2:30
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science technology
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6:21, 6:21
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Silicon Valley
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3:04, 3:04
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national news
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0:36, 0:36
)
clean energy
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2:08, 2:30, 2:08, 2:30
)
Automatically Generated Transcript(may not be 100% accurate) ( more )
" Hello welcome to that you don't show I'm -- scam. And I hate him bucket and I -- he's been here that the force is the editor for the GigaOM blog effort to attack which is -- clean tech blogs and thanks for joining us today thanks for having an in honor of your expertise and clean -- people that -- Clean tech stories this week and there's a lot of -- of the national news. The big story I think hearing about it that the ethanol and she's getting very. Yes eaten out bases are turning to coal more increasingly. The reason they're doing that is a lot of venues natural gas now two power that you cannot plant but many of them are turning to coal and the margins are getting planner -- that's just seems like pushing themselves in the foot. They're now using coal in their back and when. The prominent person purpose of their mission was to get off of school to begin yet it's interesting because it totally negates greenhouse gas reduction that. People are using you now to. Meet those connections like some aim management -- members and if you're out of the way to to make -- work that updates via an in the second story this week is that. There's big money for the solar company and they wouldn't and infineon race 59 in this week it's interesting because of a lot of Internet old time Internet investors are backing the company pilgrims idea lab coastline ventures the end -- And Paul Allen's vulcan capital the -- was actually led by DOT partners but those are some pretty big names in that world backing them so. -- is that Paul Allen and and you know I think is a great. We'll they make at Stirling engine powered solar system. And this Stirling engine makes the process of converting. This alert that sun's heat to electricity allot more efficient friends and efficiencies -- we're gaining extra value acting and this is to build solar thermal plant. In places like the Mojave desert and California may produce a massive amount. Renewable come clean energy and electricity that utilities can buy. So we'll we'll see good things and then they'll they'll never need to fall back to -- treated there and holding but Carolina. So will actually have a great clean tech test for us today. I'm coming up we have been -- cook political founder of sun Microsoft systems along hundreds of capitals in the valley and a man determined to help Foster clean energy technologies. And and our dependence on foreign oil so. We'll be right back with an a couple of."
" Welcome back and repair of a note coast club coastal ventures a man who needs no further inspection and that thanks so much for joining us today that -- So coastal ventures is a relatively new fun you -- your man with a very long track record. Here in Silicon Valley your funds start in 4 and is most known for its clean tech investments but if you could give me favorite -- in a bit with how big is the fund and you know what percentage of your investments are actually clean tech for the other types of and then put."
" We have but -- investments from the clean tech site. In about twenty on other traditional mobile and and add those kinds of applications. They sell them -- play it because it's. Because so much clean tech world's a lot of of yours Lisa seeing people -- BC model you put money an expected three is a three to seven year return with satanic on the -- on return on your investments do the same rules apply to clean tech or do you look for something different. I do believe the same groups that apply. I do believe because -- sides of these markets humans here humongous that it could speak. Ten million dollars lose more market and he -- his stature. Ten million dollars would be huge market in states in the conduct does or in the national -- Markets much lighter but there's much wanted to focus on in my notes -- since I'm straight. Will open on -- science projects that most people think can be done."
" I know according to some of that data area Nat on the investment in 2007 I think they'd put -- revenge is -- sixty to seventy million for 2007."
" Well we don't comment on it I would say you have probably the largest portfolio I no law in. On this planet including. You know what -- advantages because -- fun is you don't like black it's fun everything that's in -- and -- on I think that's an interesting because we don't have a quarter it to me."
" So you -- a lot earlier than I seasonal and the other clean tech investors. When your. We always the early stage investment is a much as an art as it is -- that your focus as much fun science. What. On factors that you release he is winning -- for very early stage in tech companies as opposed to. You -- with software at the founders their track record in more ambiguous factors like with clean -- you police focused much on science."
" You know the fact is all of this thing most people don't know between 1998. And 2001 thing he did you pay him in an. More than half my investments my act kind of -- but less than anything else -- their ideas experiment a little more and not happy with the progress and together. -- evolved past more Kate big themes and after they have that. Then they can start to accelerate its spending and spend more money. So it's not and -- for us to start it a 10200000. Dollars a 1000002 million dollars. That cry out in hindsight I'd like to explain it if you read this in that section there's six or it's going out. If you pick an -- to. --"
" And how much of your firm's resources do you spend on. Researching the various skills as opposed to researching the initial companies into the village is staying abreast on. On changes and in technology and and science."
" Well I spend a tremendous amount of time staying abreast of science technology more kids. Formulating papers just last summer. I -- 150 pages. On clean tech and must. -- that million ounces for myself I put it on not a bad site so others can access it hit -- so we don't particularly clients keep these things proprietary right to keep things we don't talk about but I do my analysis. It's not -- not too many foresters have partners in it class in this -- you really have to do you own analysis."
" They are also very prolific writer in the media. And controversial. And they know I've seen that -- And -- articles and -- from them. I was just -- if you want to comment on that little bit."
" I'm happy in the -- any topic you I have an opinion that I believe what I don't -- I believe it happiness. The fact is that carbon reduction of -- and makes no sense at all hybrids to act. Something like the Prius Bowling Green -- and green. And I keep saying that especially that the US script. That's what it put on the best. In response to visit from St. out of this thing hybrid does matter -- the numbers the facts analysis. You notice he's never done any analysis is at least not what's it. What the carbon reductions but my all put dollars and on capital spending needs -- thousand dollars extra. On a pre gets home it's reduction you actually act on -- invading saying it's just nice to get. Mackenzie just did a study that said it cost ninety dollars. What -- apartment. Reviews club and using hundred I think it's not cups. It's among the most expensive so if somebody has a little bit of money can -- that one into the basket and then they should change their light well. That's saves them money and it's negative -- but but like the Prius maybe ninety dollars in contributions. One has to be economic but these this is what analysis. That's what all misunderstood. What do you think is probably the biggest the single most biggest failure of American environmental policy that we could actually do something about. Well I liked him -- Memphis. But every. Nuclear plant environmentalists who waited. They ended up causing to quote plants the fact that the history of the last one yet. And what's new plan power plants in this country -- Because environmentalists. Oppose nuclear. And ask somebody like -- humidity -- nuclear or coal as saying oh he performed its hit a quote but we don't want either way."
" Hello welcome to that you don't show I'm -- scam. And I hate him bucket and I -- he's been here that the force is the editor for the GigaOM blog effort to attack which is -- clean tech blogs and thanks for joining us today thanks for having an in honor of your expertise and clean -- people that -- Clean tech stories this week and there's a lot of -- of the national news. The big story I think hearing about it that the ethanol and she's getting very. Yes eaten out bases are turning to coal more increasingly. The reason they're doing that is a lot of venues natural gas now two power that you cannot plant but many of them are turning to coal and the margins are getting planner -- that's just seems like pushing themselves in the foot. They're now using coal in their back and when. The prominent person purpose of their mission was to get off of school to begin yet it's interesting because it totally negates greenhouse gas reduction that. People are using you now to. Meet those connections like some aim management -- members and if you're out of the way to to make -- work that updates via an in the second story this week is that. There's big money for the solar company and they wouldn't and infineon race 59 in this week it's interesting because of a lot of Internet old time Internet investors are backing the company pilgrims idea lab coastline ventures the end -- And Paul Allen's vulcan capital the -- was actually led by DOT partners but those are some pretty big names in that world backing them so. -- is that Paul Allen and and you know I think is a great. We'll they make at Stirling engine powered solar system. And this Stirling engine makes the process of converting. This alert that sun's heat to electricity allot more efficient friends and efficiencies -- we're gaining extra value acting and this is to build solar thermal plant. In places like the Mojave desert and California may produce a massive amount. Renewable come clean energy and electricity that utilities can buy. So we'll we'll see good things and then they'll they'll never need to fall back to -- treated there and holding but Carolina. So will actually have a great clean tech test for us today. I'm coming up we have been -- cook political founder of sun Microsoft systems along hundreds of capitals in the valley and a man determined to help Foster clean energy technologies. And and our dependence on foreign oil so. We'll be right back with an a couple of."
" Welcome back and repair of a note coast club coastal ventures a man who needs no further inspection and that thanks so much for joining us today that -- So coastal ventures is a relatively new fun you -- your man with a very long track record. Here in Silicon Valley your funds start in 4 and is most known for its clean tech investments but if you could give me favorite -- in a bit with how big is the fund and you know what percentage of your investments are actually clean tech for the other types of and then put."
" We have but -- investments from the clean tech site. In about twenty on other traditional mobile and and add those kinds of applications. They sell them -- play it because it's. Because so much clean tech world's a lot of of yours Lisa seeing people -- BC model you put money an expected three is a three to seven year return with satanic on the -- on return on your investments do the same rules apply to clean tech or do you look for something different. I do believe the same groups that apply. I do believe because -- sides of these markets humans here humongous that it could speak. Ten million dollars lose more market and he -- his stature. Ten million dollars would be huge market in states in the conduct does or in the national -- Markets much lighter but there's much wanted to focus on in my notes -- since I'm straight. Will open on -- science projects that most people think can be done."
" I know according to some of that data area Nat on the investment in 2007 I think they'd put -- revenge is -- sixty to seventy million for 2007."
" Well we don't comment on it I would say you have probably the largest portfolio I no law in. On this planet including. You know what -- advantages because -- fun is you don't like black it's fun everything that's in -- and -- on I think that's an interesting because we don't have a quarter it to me."
" So you -- a lot earlier than I seasonal and the other clean tech investors. When your. We always the early stage investment is a much as an art as it is -- that your focus as much fun science. What. On factors that you release he is winning -- for very early stage in tech companies as opposed to. You -- with software at the founders their track record in more ambiguous factors like with clean -- you police focused much on science."
" You know the fact is all of this thing most people don't know between 1998. And 2001 thing he did you pay him in an. More than half my investments my act kind of -- but less than anything else -- their ideas experiment a little more and not happy with the progress and together. -- evolved past more Kate big themes and after they have that. Then they can start to accelerate its spending and spend more money. So it's not and -- for us to start it a 10200000. Dollars a 1000002 million dollars. That cry out in hindsight I'd like to explain it if you read this in that section there's six or it's going out. If you pick an -- to. --"
" And how much of your firm's resources do you spend on. Researching the various skills as opposed to researching the initial companies into the village is staying abreast on. On changes and in technology and and science."
" Well I spend a tremendous amount of time staying abreast of science technology more kids. Formulating papers just last summer. I -- 150 pages. On clean tech and must. -- that million ounces for myself I put it on not a bad site so others can access it hit -- so we don't particularly clients keep these things proprietary right to keep things we don't talk about but I do my analysis. It's not -- not too many foresters have partners in it class in this -- you really have to do you own analysis."
" They are also very prolific writer in the media. And controversial. And they know I've seen that -- And -- articles and -- from them. I was just -- if you want to comment on that little bit."
" I'm happy in the -- any topic you I have an opinion that I believe what I don't -- I believe it happiness. The fact is that carbon reduction of -- and makes no sense at all hybrids to act. Something like the Prius Bowling Green -- and green. And I keep saying that especially that the US script. That's what it put on the best. In response to visit from St. out of this thing hybrid does matter -- the numbers the facts analysis. You notice he's never done any analysis is at least not what's it. What the carbon reductions but my all put dollars and on capital spending needs -- thousand dollars extra. On a pre gets home it's reduction you actually act on -- invading saying it's just nice to get. Mackenzie just did a study that said it cost ninety dollars. What -- apartment. Reviews club and using hundred I think it's not cups. It's among the most expensive so if somebody has a little bit of money can -- that one into the basket and then they should change their light well. That's saves them money and it's negative -- but but like the Prius maybe ninety dollars in contributions. One has to be economic but these this is what analysis. That's what all misunderstood. What do you think is probably the biggest the single most biggest failure of American environmental policy that we could actually do something about. Well I liked him -- Memphis. But every. Nuclear plant environmentalists who waited. They ended up causing to quote plants the fact that the history of the last one yet. And what's new plan power plants in this country -- Because environmentalists. Oppose nuclear. And ask somebody like -- humidity -- nuclear or coal as saying oh he performed its hit a quote but we don't want either way."
sleepy6uy
Started discussion: February 15, 2008 @ 5:52pm GMT
Episode 29 Discussion - Venture Capital vs. Oil: Funding Clean Tech
Meet Vinod Khosla, co-founder of Sun Microsystems, a long time venture capitalist and a man determined to help foster clean energy technologies and end our dependence on foreign oil.
Innovator8
about 1 year ago
I checked out the ilike.com site brought up on the show. As it turns out, it's got a great guess-the-song type game! Just thought I'd bring it up for anyone that may be interested.









The only thing I've noticed since we've started this Ethanol subsidy is that the cost of corn flakes has gone up.
I wonder how far Honda's new Hydro model car will fare. It seems like a nifty idea. Time will tell if it pans out.