Original Sun Microsystems business plan by Vinod Khosla

Original Sun Microsystems business plan by Vinod Khosla

TL;DR: The Sun Microsystems business plan made by Vinod Khosla.

I just stumbled upon an interesting startup artifact. The original business plan for Sun Microsystems by Vinod Khosla!

It’s surprisingly short and to the point. It cracks me up to see some of the financial plans in the appendix are done in hand!

History of Sun Microsystems

Vinod grew up dreaming of being an entrepreneur, despite growing up in an Indian Army household with no business or technology connections. Since the age of 16, when he first heard about Intel starting up, he dreamt of starting his own technology company.

Upon graduating with a bachelor’s in electrical engineering from IIT, Delhi, Vinod failed, at age 20, to start a soy milk company to service people in India who did not have refrigerators. He moved to the US and got his master’s in biomedical engineering at Carnegie-Mellon University. His start-up dreams attracted him to Silicon Valley, where he got an MBA at Stanford University in 1980.

Upon graduation, he was one of the three founders of Daisy Systems, which was the first significant computer-aided design system for electrical engineers. The company went on to achieve significant revenue, profits, and an IPO, but Khosla, driven by the frustration of having to design the computer hardware on which the Daisy software needed to be built, started the standards-based Sun Microsystems in 1982 to build workstations for software developers. At Sun he pioneered “open systems” and RISC processors. Sun was funded by friend and board member John Doerr of Kleiner Perkins Caufield & Byers.

In 1986 Vinod switched sides and joined Kleiner Perkins, where he was and continues to be a general partner of KPCB funds through KP X.

How Vinod Khosla pitched Sun Microsystems

The Sun Microsystems business plan

 

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    Comments (8)

    • Vinod Khosla messed up Sun Microsystems and keeps insulting Trump on Khoslaventures website. How unprofessional he can be?
      I need seed money but won’t take it from people like him.

    • Hello Alex,
      Thanks for this, it is helpful. I wonder if trust and fewer players lowered competition for exceptional founders like Mr Vinod.
      Today, we sometimes see many great startups passed over because no one trusts or know them.

      Mr Vinod’s page 23 exhibit is very straightforward and I’m using it for my “business plan/pitch”.
      Yesterday an investor who knows me personally for 13years said to me, “this business is profitable, are you interested in it?”
      I said yes, he said “send me a business plan and I’ll fund it”

      To be honest, many startup founders know how to make things very simple. But it seems the industry has created a textbook “standard” pitch/plan that many VCs must see to deem such startup trustworthy and “fundable”

      What do you think could help these founders?

      • ET – Thanks for sharing your story.

        Your assumptions are flawed. VCs want to understand certain things for logical reasons. How it is communicated is very much flexible.

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