1. NanoGene Case Study By MTiPO: Desiree Fabunan Yee Han Kuan
Svyatoslav Mishchenko
Patrick Lin Ngai Lung
Wenhan Zhou

2. Decision Decision Assumptions: Hire Paige Miller as CEO
Make Will Tompkins Chief Scientific Officer
Assumptions:
We want to maximize the strength of the company and the team
Paige will accept more responsibilities in exchange for a lot of equity
Tompkins will accept relinquishing some of his responsibilities as CEO
Co-founders will accept Paige’s leadership
Problem:
Facebook Growth/Expansion Strategy
Proposed Solutions:
- To grow internationally, expanding its user base & to gain foothold in other countries on top of those existing countries.
- To open up different categories other than college & high school to boost up its user base in US.
- To partner local advertising companies in countries with strong facebook foothold to increase the company revenue.
Assumptions:
- Establishing a larger user’s base is a higher priority than compared to increasing revenue.
- There is significant number of countries which Facebook has a very little penetration with a very small user’s base.
Facebook has the ability to expand & customize its website with local language – localization. (
The business can grow virally in a real life social network if it has critical mass
( &

3. SWOT Analysis Strengths Weaknesses Opportunities Threats
Industry experience
Experience in diverse roles
Experience in later stages of a company (pre-IPO to post-IPO)
Weaknesses
Never held CEO role
No experience raising funds or writing business plans
Potential conflict of interest if she consults other startups
Opportunities
Exploit knowledge of successful pre-IPO firm to make changes
Allow Tomkins to avoid dealing with hiring and culture
Boost strength of team in VC’s eyes to get higher valuation
Threats
May turn out to be a poor CEO
Co-founders will not recognize her as hew leader
VC’s will not like outsider’s leadership
How strong a candidate is Paige Miller?   What makes you think so?
She has industry knowledge and experience with bio tech startup
She has experience in many areas of a company
Mainly manufacturing
With some experience in marketing and finance
Experience in many stages that a startup goes through from Pre IPO to acquisition
Consulting provides experience for the industry
Weakness
She has never been a CEO before
She has not raised funding
She has not talked to VC
No biz plan writing experience
Might be a conflict of interest since she consults for biotech startup

4. Compensation Details Compensation: Motivation Signals to Paige
$175,000 yearly
7.81% post-series A equity (3.15% times 2.5), vested at:
20% at start, 20% at year’s end, 60% at 2% per month
Motivation
Keeping her responsible by giving ownership of the company
Rewards (equity value) based on effort
Vesting with milestones so that things get done
Signals to Paige
Her contribution and value to the company are important
She has a lot of responsibility and power in the company
Company did its best to provide a fair package given means
What compensation package will you offer to Paige Miller?
175K yearly with 7.81% of post series A equity with vesting over
20 % at start, 20 % at end of year 1, 60 % at rate of 2% per month
CEO Structure
How does a compensation package motivate an executive? 
Keeping her responsible and instill a sense of ownership in the company.
Incentive to put in a lot more effort with rewards
Vesting with milestones so that things get done.
What signals do you want to send Paige with her offer?  
Her contribution and value to the company is important
She has a lot of responsibility and power in the company
The company tries to provide a fair package to her based on the company’s ability

5. New Capitalization Table5

6. Reality Test Risk Mitigation Strategy Contingency Plan Severity
Probability
Team
Co-founders are unhappy with CEO with more money and equity
Explain industry standards for CEO’s and motivations for hiring Paige as CEO
Increase co-founders’ compensation
High
Low
Performance
Paige performs poorly with extensive responsibilities as CEO
Clearly outline goals and responsibilities and adopt to difficulties
Find another CEO with Tomkins as interim
Medium
Financial
VC’s pull funding due to non-compliance with suggestion to lower compensation for founders
Explain to VC’s reasoning behind current compensation and difficulties in lowering compensation
Find a new VC
What are the risks of this offer once you implement it?
CEO’s performance is unknown
Med, high
Find another CEO with Tom as interim CEO
Happiness of founders and VCs with the offer
Founders: less control and less money, equity than them
low, high
up the compensation plan
VC: pull out their offer because of over compensation of salary for founders
Low, medium
Find new VCs
Lower the salary for founders
How will Paige, the VCs, the Board of Directors, and your co-founders react to your offer? 
Piage:
Happy but she might be happy with the extra equity.
This can be good challenge for her
VC:
Might not be happy with higher valuation.
Need to do due diligence on her again.
More confidence in the team as Paige has biz experience
Angel
Should be ok as this is a good addition to the team which will increase the chances of success
Co founders:
surprise and concern over control of company since more equity given to Paige
Understanding as CEO has higher equity with higher responsibility
Might be unhappy with equity share that page gets
Can set a vesting schedule for paige to get the 7.8 %