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Technology & Innovation

How Capitalism Solves Poverty

Venture capitalist Vinod Khosla plans to create an investment fund for companies fighting poverty in India and Africa that provide social services like health, energy and eduction.

“Mr. Khosla is what I call a ‘social arbitrageur.’ He understands that there is tremendous economic potential in solving social problems. Not just in the ethereal, abstract, long-term sense. Like, in the tomorrow sense. Khosla recently earned $117 million—pocket change for a billionaire—on the recent IPO of SKS Microfinance, one of the largest micro-lenders in India. Khosla, who founded Sun Microsystems, also raised a $1.1 billion for a ‘green’ VC fund last year. According to Khosla: ‘There needs to be more experiments in building sustainable businesses going after the market for the poor. It has to be done in a sustainable way. There is not enough money to be given away in the world to make the poor well off.'”


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