Markets & Business
Vinod Khosla disavows partner Keith Rabois’ ICE shooting remarks
Khosla Ventures founder Vinod Khosla and partner Ethan Choi publicly disavowed partner Keith Rabois’ comments regarding an ICE shooting, raising questions about potential cap table fallout.
A public rift has emerged at venture capital firm Khosla Ventures following social media posts by partner Keith Rabois regarding a shooting involving Immigration and Customs Enforcement (ICE)—the federal agency responsible for border control and immigration enforcement—in Minneapolis, MN. Rabois defended the agency’s actions in the killing of Alex Pretti, arguing that Pretti was at fault and committing a felony. Rabois asserted that law enforcement had not shot an innocent person, claimed that undocumented immigrants commit violent crimes daily, and stated that the individual had unequivocally attempted to draw a weapon. He also argued that interfering with a law enforcement operation is not protected by constitutional amendments. Additionally, Rabois criticized local police in Minneapolis, stating that he did not believe law enforcement in MN could be credible sources in an investigation, and blamed the local police’s refusal to cooperate for creating treacherous conditions.
The comments prompted immediate public disavowals from other leaders within the firm. Partner Ethan Choi distanced himself from the remarks, stating that Rabois does not represent the views of everyone at Khosla Ventures. Choi called the event in MN plain wrong and described it as a person’s life taken unnecessarily. Vinod Khosla, the founder of Khosla Ventures, publicly agreed with Choi’s stance, writing, “I agree with @EthanChoi7. Macho ICE vigilantes running amuck [sic] empowered by a conscious-less administration”.
While differing political viewpoints can sometimes serve as a strength for venture capital firms, they can also cause internal disruption. Other venture capital firms have faced similar public controversies. For comparison, Sequoia was recently affected by public comments from one of its partners regarding a mayoral candidate in New York City. While that partner remains at Sequoia, the firm’s leader at the time, Roelof Botha, stepped down as senior steward in November.
The current public dispute at Khosla Ventures comes after the firm rehired Rabois in 2024, despite knowing his outspoken political views. There may be continued fallout for the firm if startup founders begin to remove Khosla Ventures from their cap tables—the capitalization tables that represent the ownership structure of a company.
Why it matters
The public rift between Khosla Ventures partners highlights internal tensions at the firm. This raises questions about potential fallout if startup founders choose to remove the firm from their capitalization tables.