Kleiner-Perkins and Genentech: When Venture Capital Met Science Kleiner-Perkins and Genentech; When Venture Capital Met Science is a case study created by the Harvard Business Review that evaluates the discovery of the biotechnology market domain. The purpose of this case study is to highlight the evolution of the biotechnology industry and the commercial use of recombinant DNA and Insulin. The case study tells a story of three individuals: Herbert Boyer, Robert Swanson, and Tom Perkins and how they were the early pioneers of artificial DNA and Insulin and the initial research and development of human growth hormone in 1979 (Hardymon & Nicholas, 2012). The case study evaluates the evolution of Genentech and other biotechnology companies in the 1970s and 1980s. There were concerns and ethical issues surrounding the commercial development of DNA and Insulin. The government had concerns of safety and experimenting
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Tom Perkins the co-founder of Kleiner-Perkins and a former employer of Boyer made a deal with Boyer to invest 25 percent of equity for $100,000 to fund pilot studies. Genentech became Kleiner-Perkin’s most valuable and successful investment (Hardymom & Nicholas, 2012). Another important breakthrough for Genentech was their ability to subcontract to universities across the United States. Genentech signed contracts with the University of California in San Francisco, the City of Hope and a private hospital in Duarte, California, and Caltech (Hardymon & Nicholas, 2012). Each facility specialized in a scientific area that was very lucrative for Genentech. For example, the contract with the University of California made it possible for Genentech would have exclusive licensee on products. The City of Hope helped Genentech possess stronger intellectual property rights by taking ownership of patents (Hardymon & Nicholas,
Tom Perkins the co-founder of Kleiner-Perkins and a former employer of Boyer made a deal with Boyer to invest 25 percent of equity for $100,000 to fund pilot studies. Genentech became Kleiner-Perkin’s most valuable and successful investment (Hardymom & Nicholas, 2012). Another important breakthrough for Genentech was their ability to subcontract to universities across the United States. Genentech signed contracts with the University of California in San Francisco, the City of Hope and a private hospital in Duarte, California, and Caltech (Hardymon & Nicholas, 2012). Each facility specialized in a scientific area that was very lucrative for Genentech. For example, the contract with the University of California made it possible for Genentech would have exclusive licensee on products. The City of Hope helped Genentech possess stronger intellectual property rights by taking ownership of patents (Hardymon & Nicholas,