Khosla Ventures backs bold, contrarian, science- and technology-driven founders pursuing 'impossibly big' ideas in billion-dollar markets. They prefer technology risk to market risk, optimize for a high failure rate to capture 'black swan' outcomes, and invest more in people than in plans — believing that if you build a great company, the returns follow. They want crazy ideas that upend established business models or create entirely new markets, not plans built on copying what already exists.
A crazy, contrarian problem worth upending an industry over — not a copy of what already exists. Founders must validate the problem rather than rely on logical-sounding assumptions.
“At the seed stage, we're looking for a crazy idea, one that may require upending an established business model or even an industry” — How We Decide
“We love products that can break monopolies or create whole new markets.” — What We Work On
“If your business plan is built on copying what existing companies are already doing” — What We Work On
“Don't assume - analyze, test, validate, iterate; false but logical sounding assumptions are one of the largest reason for entrepreneurial failure.” — Vinod Khosla
A bold, differentiated, often unreasonable-looking approach with a significant innovation in technology or business model. KV prefers technology risk and wants the technical risks identified and a plan to remove them cheaply.
“A significant innovation in either (or both) technology or business model.” — What We Work On
“Without an element of foolishness, foolhardiness, unreasonableness, you are not going to attempt unreasonable things. If you only attempt reasonable things, you'll only do what most people do. So by definition, we need to try foolish things.” — Vinod Khosla
“We prefer technology risk to market risk, and we prefer to remove technology and business risks up front.” — What We Work On
“What can be imagined technologically reasonably can be invented is more true than not.” — Vinod Khosla
A billion-dollar (not million-dollar) market with a credible path to growth; founders unintimidated by large or newly-enabled markets. KV explicitly avoids niche low-upside markets.
“A billion dollar market (versus a million dollar market) with a credible path to growth.” — What We Work On
“We are looking for billion-dollar markets and differentiated approaches.” — How We Decide
“Ventures that aren't intimidated by large markets — either current ones, or those newly enabled (or disrupted) by innovation.” — What We Work On
“Niche markets with low upside but good IRR” — What We Work On
Evidence that the riskiest assumptions are being mitigated rather than vanity metrics. At seed, five-year projections are discounted; at growth, a real history of customer execution and an unfair advantage are required.
“Seed is about setting up your founder capacity to build a large business and to identify your risks.” — Seed Fund
“Your five-year marketing financials and revenue projections are a shot in the dark.” — Seed Fund
“Has your technology proven that you have an unfair advantage in the market with a history of customer execution?” — Opportunity Fund
“the critical importance of understanding and accurately presenting financial metrics when building a company” — David Weiden
'A teams' — founders who are the best in the world at what they know, self-aware about what they don't, and able to build a team to fill the gaps. KV invests more in people than in the plan.
“We look for A teams and founders: entrepreneurs who know what they know, and are the best in the world at it — but are also aware of what they don't know” — How We Decide
“We invest more in people than in a specific plan, because plans often change.” — How We Decide
“The team you build is the company you build, not the plan you make.” — Vinod Khosla
“Is the team you have the strongest in your industry that will allow you to scale the company?” — Opportunity Fund
A model with a significant innovation in technology or business model that supports building a big, ambitious company; KV is focused on company building over near-term ROI.
“We are looking to build companies. In our view, ROI follows company building.” — What We Work On
“A significant innovation in either (or both) technology or business model.” — What We Work On
“If we build the big successful company, then the returns take care of itself.” — Vinod Khosla
“We like to see quarterly financials for the next eight quarters and annual financials beyond that.” — Opportunity Fund
A sustainable, differentiated advantage — ideally one that breaks a monopoly or creates a new market. Contrarian positioning beats consensus; copying is disqualifying.
“Only contrarian thinking leads to truly revolutionary companies.” — Thought Provoking
“We love products that can break monopolies or create whole new markets.” — What We Work On
“Technology risk has been mitigated through a substantially proven and sustainably differentiated approach.” — Opportunity Fund
“If your plan is built on copying, we are probably not the right fit for you.” — Opportunity Fund
A technology inflection that newly enables or disrupts a large market — KV's reinventing-societal-infrastructure thesis. AI in particular is framed as a once-in-history amplifier of human capability.
“Ventures that aren't intimidated by large markets — either current ones, or those newly enabled (or disrupted) by innovation.” — What We Work On
“AI, by contrast, amplifies and multiplies the human brain much as the advent of steam engines and motors amplified muscle power.” — Vinod Khosla
“AI stands as the intellectual parallel to these engines, albeit likely more impactful.” — Vinod Khosla
“The nation that emerges as the leader in technology, particularly in AI, in the coming two decades, will be in the commanding position for the global distribution of technology, economic benefits and influence.” — Vinod Khosla
A capital-efficient plan to eliminate the biggest risks at the lowest possible cost, with a clear view of which risks remain and the go-to-market to address them. Seek a builder partner, not just money.
“From a seed perspective, planning for risk elimination at the lowest possible cost is the key variable.” — How We Decide
“We want to understand what risks remain, and what you're doing to mitigate them, as well as your go-to-market approach.” — How We Decide
“If you are looking solely for funds as opposed to help in building a business, we are probably not your best seed fund option.” — Seed Fund
“Clear identification of the key success variables and missing pieces is important.” — How We Decide
“Without an element of foolishness, foolhardiness, unreasonableness, you are not going to attempt unreasonable things. If you only attempt reasonable things, you'll only do what most people do. So by definition, we need to try foolish things.”
“the critical importance of understanding and accurately presenting financial metrics when building a company”