The move comes one year after Sathaye left Khosla Ventures, which he had joined in late 2010.

“I took six months completely off, and then started investing a bit personally in a couple of companies and went on those boards,” Sathaye explains. “I wasn’t really looking to join another firm until Jim [Kim] called me and explained what Formation 8 was all about, and working with some of these people – both those I knew from Khosla and people like Joe Lonsdale – really intrigued me. Plus, it helped me realize that I was kind of bored of retirement… But this wasn’t a calculated decision. It just worked out this way.”

Sathaye becomes the fourth member of the Formation 8 team with Khosla Ventures experience, following partner Jim Kim and senior advisors Gideon Yu and Pierre Lamond. His deals with the firm included NutaniX, which recently raised new funding at more than a $2 billion valuation.

“Formation 8 has a very good team, but I think I can provide some experience in the enterprise infrastructure and software spaces where they really haven’t been too focused in the past,” Sathaye says.

Prior to Khosla, Sathaye spent nearly a decade with Matrix Partners, where his deals included Aruba Networks (ARUN).

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Sathaye formally began work at Formation 8 last week, and will be a general partner on the firm’s second fund (which, according to prior media reports, is targeting $500 million).