Vinod Khosla hits back at 60 Minutes for cleantech 'errors'

video CBS: cbsnews.com/videos

The Dollar-zone can't provide longterm #Cleantech Capital

the Chinese can, they bought US #Cleantech in Billions

see us in 2030 ( end of video )

Khosla: #CleanTech

Fact: I have not invested over a billion dollars of my own money into #cleantech.

It is substantially less, and a simple query to us would have corrected this error. We manage a balanced portfolio, and it has not "crashed" nor is it "dead." In fact, our returns are significantly above the venture capital average.

Fact: The U.S. spent $502 billion subsidizing fossil fuels in 2011. fossil fuel subsidies that disadvantage #cleantech.

The errors in your story are numerous.

Fact: I have not invested over a billion dollars of my own money into cleantech. It is substantially less, and a simple query to us would have corrected this error. We manage a balanced portfolio, and it has not "crashed" nor is it "dead." In fact, our returns are significantly above the venture capital average.

Fact: Contrary to your assertion, the U.S. Department of Energy (DOE) Loan Guarantee Program has created 55,000 new cleantech jobs.[1]

Fact: The DOE loan program, despite your implications, has a 97% success rate.[2] The former program head, Jonathan Silver, expects it to make money, not be a subsidy.

Fact: There is $51 billion remaining in DOE loan money.[3] The amounts in the CBS report are far from "spent" or allocated. You seem to want to cite big numbers, whether they are true or not!

Fact: A substantial portion of DOE loans is allocated to nuclear energy[4], not just cleantech segments like biofuels, solar or wind, a fact conveniently left out despite your being aware of it.

Fact: The U.S. spent $502 billion subsidizing fossil fuels in 2011. This is the result of directly lowered prices, tax breaks and failing to properly price carbon's negative externalities.[5] You ignored the fact that energy is far from being a level playing field. Many other subsidies are hard to account for like MLP partnerships, accelerated depreciation and below-market royalties that are never categorized as fossil fuel subsidies that disadvantage cleantech.

Stop subsidies ( $500bn for fossil) to make #CleanTech work

At scale, new technologies must compete with conventional fossil fuels on price and performance – in the U.S., as well as in India and China. Khosla Ventures does not believe in subsidy-dependent markets. Subsidies force innovation into a niche and create dependence on financial incentives that will eventually disappear. I have publicly stated that I am against corn ethanol and wind subsidies, among others, and in favor of reducing solar and biofuel subsidies over time.

As Robert F. Kennedy said,

"Only those who dare to fail greatly can ever achieve greatly."

— Vinod Khosla

source: finance.fortune.cnn.com