NanoGene Technologies Essay

NanoGene Technologies, Inc is a life sciences start-up ground on nanoengineering. The firm was founded by an unusually grown number of people five employees of the east fetch of Technologies Advanced Materials Sciences Lab (AMSL). The founders worked in different sections of AMSL, provided they were working on a set of technologies that were think in the human genome project. Together, the founders developed techniques and compounds that caused the genes to stretch give away and straighten up making it much easier for labs to do the cutting and manipulation that is required in diagnostic testing.NanoGene planned to use this technology, which is owned by the Eastern Institute of Technologies, to begin to sell the patented substratum material to diagnostic testing labs around the world. As the traffic model of NanoGene formed, the founders decided to equally conk out the equity among the five members and all of them would take in the similar recompense of $120,000. leave al one(a) Tompkins, one of the founders, was named the CEO. In the setoff year, NanoGene secured the required intellectual property to the technology by offering the Eastern Institute of Technologies 15% in equity and a 3% royalty on sales. bequeath Tompkins used one of his contacts, an active ideal investor, to obtain the angel breeding of $600,000 at $2.25 one million million post-money valuation. The repute hypnotism, customer segment, and revenue streams argon slightly straight forward. NanoGenes technology offers their target customers, diagnostic testing labs around the world, an easier and faster way to deal diagnostic testing. The sales of the substrate material pass on provide NanoGene with its source of revenue. Currently, NanoGene is trying to recruit Paige miller, a Havard Business School graduate who has been doing some consulting for NanoGene. Additionally, NanoGene is in their Series A funding.NanoGene is looking to raise $10 million which will be sufficie nt to fund them for 18 months, to prove their technology, and to get them to a master production. At a meeting with a hazard capitalist, NanoGene learned about the issues VCs set about with the firm. The first precaution the VCs have involves the founding team. The founding team is preferably large, five members, and all of the founders are pure scientists with subatomic to no furrow experience. Generally, the VCs invest in technology based start-ups with a founding team of deuce to three members.Usually one of the founders has had experience driving force the commercialization of technology, typically as a honcho Scientific Officer at an establishedfirm. The alone(predicate) size of NanoGenes founding team and their privation of experience is an area of worry for the VCs. The VCs are in any case concerned about the founding teams decision to compensate all founders equally. The scientists are split the equity evenly and are receiving a remuneration of $120,000 which i s, at a minimum, $30,000 more than the annual fee of their former jobs at AMSL.VCs believe the founders and future employees should be compensated based on their added value to the confederacy a strategy commonly practiced in the pedigree world. Typically, biotech CEOs have a higher recompense and will retain about 2.5 times as much equity as VP-level founders. The VCs think Will Tompkins should be compensated more and the rest of the founders should be compensated less. NanoGene needfully to address the VCs concerns in rig for NanoGene to be a viable company. Paige miller, a advisor for NanoGene, should be part of the solution in eliminating the VCs concerns.The founders have little to no background in strain and have not been very master as a team. In business, team members communicate and are not afraid to disagree with each other. With NanoGene, the founders deprivation to make everyone happy. The scientist agreed to compensate equally since it would have been disrupti ve in their opinion to try to mark equity share and remuneration based on a more complicated set of principles. Members didnt want to upset the rest of the team. Additionally, the founders are already having disputes about how to compensate future employees.NanoGene needs someone with business experience who can be professional and focus on the goal of the company.Paige moth miller has the business experience and personality NanoGene requires. The only complication is her earnings of $175,000 in salary and 3% of the company equity. Paige Miller can overstep the company through the disagreements and knotty challenges they will face in the early stages of development. Will Tompkins does not have enough experience to lead the company and commercialize the technology. The CEO should instead be Paige Miller, who is more qualified than Tompkins. Instead of increasing Tompkins salary and share of equity, NanoGene can compensate Miller. Installing Miller as the CEO will help exculpa te the CEO payment issue and the lack of business experience found at NanoGene. At present, the founders whitethorn not be happy about their smaller share of equity and potentially lower salaries, provided in the long run, the action of making Miller CEO will pay off. Miller has precious knowledge ofin commercializing technology and running a business, and can guide discussions on the hiring process, the potential compensation policies, the company goals, and company culture. She will also buzz off the professional touch NanoGene needs. Miller is also one of the few people familiar with the technology and business ideas of NanoGene since she has worked with NanoGene in the past. Without Miller, NanoGene may not get the funding they need to continue as a company.another(prenominal) top priority of NanoGene is proving the technology. This cant be done if there is no funding for the VCs. In the future, NanoGene should conduct more market research on diagnostic tests. Currently, Nan oGene has a simple value proposition with a very general customer segment. NanoGene needs to identify specific customer segments of high return and low competition. Research in other value propositions such as cost and accuracy will help also NanoGenes profitability.