Earlier today, we reported that veteran Silicon Valley Vinod Khosla is bullish on India. Here’s why, in his own words*.
1. Almost all innovation in every part of the world only comes from the startup world. Walmart didn’t innovate retail. Amazon did. Big media didn’t change. Google did. General Motors didn’t change cars. Tesla did. Almost all the burden of innovation lies in the hands of entrepreneurs, many of whom are in India now.
2. In the day and age of gloom and doom, I’m an optimist. In the last 30 years of doing this, when the best companies stop doing innovative work, the best people leave and startup. It is the best time to do a startup. Funding is hard at the time but entrepreneurs become better in such times.
3. Mobile health completely amazes me. You can slash healthcare related costs by 90% in India. That may take 10-15 years but my bet is that it will happen in places like India, which is short of resources. Health services delivered through your mobile phone will be of better quality than what you get in the US. It will be so cheap that it is almost free.
4. Here’s the reality. No matter which area you look at, 95% of any population of people do what everybody else is doing and 5% innovate. What will change? Investors will see that 5 years from now a few bold ideas have succeed and then they will say we’ll invest in bold ideas. It’s a vicious cycle.
5. It’s only a matter of time. The ecosystem isn’t the same– not as good as the US. But it is getting better. Even if people fail, there will be a learning from it. I wouldn’t be pessimistic about it. The short term always feels pessimistic. You have to look at the long term. Where you have a billion people with 5% growth which nations would die for.