Co-founder Sun Microsystems, as CEO he was instrumental in raising the initial funds to launch one of the most successful technology startups in history. As a Venture Capitalist he turned $50 million in early investments into $15 billion (as of 3.01.01). Widely acknowledged as the most successful venture capitalist of all time.
Rationale:
Since 1980 Venture capital funds have invested over 100 billion dollars in new companies. These companies are fueled by superior talent, and lots of it. The frenzy to recruit these individuals caused ripple affects in compensation and supply across many functions at many levels and into many industries.
Although many startups fail in spite of their ability and success at recruiting several key geniuses. Failure can usually be traced to their inability to field a complete team. Most technology firms failed because the sales or marketing players were not compatible with the business plan or more likely the founders.
The results of these failures and the well-publized successes built a talent shortage bubble. This talent shortage bubble changed the look and feel of the employment picture for ever. Individuals resigned from employers where they had 10, 15, 20 years tenure. Many left their first job (out of college). Within one or two years over 80% were back on the street or involved in their next venture. The lure of riches, the up-tick in base salaries and the potential of stock options upset the corporate cultures of many small, mid-sized and large corporations. The resulting effects upon the workforce has built unrealistic expectations or fear during the recruiting process and while on the job.
Entrepreneurs drive the recruiting industry. Small companies in aggregate hire the most people.
Vinod Khosla is the entrepreneur of the last millennium and has established his place and will lead venture capital behavior into the future.
Money follows money. Vinod s success and the success of his investments have drawn many others into the frey.
Quotations:
'I spend 90 percent of my time helping companies after I have made the investment - in strategy, in tactics, in transactions, in relationships, in recruiting, in implementation of something – in the process of building a company'.
'Nobody will ever say that I ever did anything that was not in the entrepreneur s interest -- but they will say I pushed them through some things that felt really uncomfortable at times'.
'The economic war is fueled by education and skilled talent, which is increasingly driven by technology'
About Vinod:
Vinod Khosla was a co-founder of Daisy Systems and founding Chief Executive Officer of Sun Microsystems where he pioneered open systems and commercial RISC processors.
Vinod serves on the boards of Centrata, Indian School of Business, Infinera, Juniper Networks, Kovio, OnFiber Communications, QWEST Communications, SEEC, Zambeel and Zaplet.
He holds a Bachelor of Technology in Electrical Engineering from the Indian Institute of Technology in New Delhi, a Master s in Biomedical Engineering from Carnegie Mellon University and a MBA from the Stanford Graduate School of Business.
Vinod Khosla has been a General Partner of Kleiner Perkins Caufield & Byers since 1986.
