Vinod Khosla is used to playing long odds on some of the startups he backs. Now, the billionaire venture capitalist is using a similar approach for another project: a legal battle over public access to his beach south of San Francisco.
Khosla believes he has the right to cut off the lone road to the waterfront at Martins Beach, a property he paid $32.5 million for a decade ago. State law says the public owns all coastline on the ocean side of the mean high tide line. Khosla says he shouldn't have to open up his private land without compensation to allow passage to the cove, which is buttressed by cliffs and impossible to reach otherwise except by water.
By the time he shut the gate in late 2009, surfers had been hitting the waves at Martins Beach for decades. When he cut off their access, a stream of lawsuits followed.
Taking a strong and unpopular position is vintage Khosla. His views on public beach access transcend the familiar world of venture capital and have made him the subject of widespread criticism. In coming months, he'll learn if the U.S. Supreme Court plans to take on the case.
Khosla's petition earlier this year to the highest court in the land raises the question as to why, in an era of enormous perceived arrogance by technology companies, Khosla is giving the public yet another reason to rage about industry leaders.
“It's a matter of principle, not whether the timing is right,” Khosla says about the case in an interview. “This is about unfairness, and I don't tolerate unfairness.” In a country based on rule of law, squelching the rights of property owners is just wrong, he adds.
“I've never seen anyone who needs a PR person more than Vinod right now,” says James Markarian, who once advised portfolio companies at Khosla Ventures and thinks highly of Khosla. “You need world class, the Johnny Cochran of PR.” Khosla says that at the advice of a top aide he recently met with a prospective public relations professional but decided against hiring her.
Public relations factor little into his motivation in general, even when the situation concerns a powerful financier seemingly trampling on the enjoyment of regular folk. Instead, Khosla's decision to take the fight to the Supreme Court reflects a man obsessed with winning and what he sees as fair play.
‘I Push Them To The Edge’
Khosla’s determination dates from at least his earliest days in Silicon Valley. Originally from Delhi, Khosla came to the U.S. for a master's degree in biomedical engineering at Carnegie Mellon University. He then applied to Stanford University's Graduate School of Business, which rejected him.
Bent on getting in, Khosla lobbied school officials, first sweet-talking his way onto the waitlist, and then making a series of calls to the head of admissions saying he would take the spot of whichever admitted student didn't show up. He won entry two days before classes began.