Khosla keeps funding biofuel maker Kior, for now

Beleaguered biofuel maker Kior has managed to close the financing it was hoping from investor Vinod Khosla, which will keep the company from temporarily defaulting on its loans and filing for bankruptcy. In a filing, Kior says it will be getting monthly installments of $5 million (via a note purchase agreement) for up to $25 million. This could keep Kior afloat for a few months, but the company will need to raise much more project financing to move toward commercialization again. Kior’s stock is up over 50 percent on the news to $0.90 per share in morning trading. Check out my recent piece on the story of Kior.

Add dairy-free cheese to the list of Khosla-backed food startups
Venture capital firm Khosla Ventures already has a long list of startups that it’s backed that are looking to make food more sustainable — like plant-based egg maker Hampton Creek Foods, organic candy company Unreal Candy, salt replacement product Nu-Tek Salt, and plant-based meat replacement startup Sand Hill Foods. But Exist has the details on the Khosla-backed vegan cheese startup Kite Hill, which uses nut milk instead of dairy to make artisanal cheeses.

So that’s what happened to the VC-backed biofuel startup LS9 (it’s not pretty)

Biofuel startup LS9 has been sold for $40 million to biodiesel maker Renewable Energy Group, reports MIT Tech Review. But before you congratulate them, note that LS9 raised $81 million over nine years, and still hadn’t reached a point where it was selling its green diesel to refiners. Last year the company brought in a new CEO, following restructuring and layoffs. Such are the long roads and harsh conditions facing biofuel startups. LS9 was backed by Khosla Ventures, Flagship Ventures, Lightspeed Ventures, and Chevron Technology Ventures.