New Cabell Hall, Room 364
Staging Innovation - Kleiner Perkins and Genentech
Discussion will center upon two dimensions of the Kleiner Perkins and Genentech case:
- How Kleiner-Perkins “teased out” the risk/uncertainties in the Genentech venture via a series of staged investments—each stage targeting a particular uncertainty facing the venture.
- The more direct set of nuts and bolts involved in the capitalization of a new company, and the representation of the series of investments in a capitalization table.
:: READINGS ::
Case Study – Kleiner-Perkins and Genentech: When Venture Capital Met Science
Feld, B. (2004). Venture capital deal algebra. Feldthoughts, July 7, 2004.
http://www.feld.com/archives/2004/07/venture-capital-deal-algebra.html
:: BE PREPARED TO DISCUSS ::
What dollar amount do you feel the somatostatin experiment was worth to Genentech? Why? Please use evidence from and analysis of the case to support your answer.
Core Module