v3 Chapter 760： Interests first (1/2)
Seeing the violent veins on Robert Swanson’s neck and the tendency to stop the conversation from anger, Xia Yu immediately said: “Actually, you can listen to my terms. You hold 25% of the equity. Our company is willing High premium, 35 million US dollars invested!”
”After three rounds of investment, you have invested a total of more than 300,000 US dollars, and you have gained more than a hundred times the profit!”
Robert Swanson was stunned when he said this.
And Harry Morrison also shrank his pupils, and the inner resistance instantly collapsed.
Buying 25% of the equity for 35 million US dollars is equivalent to valuing Genentech at 140 million US dollars.
Now Genentech’s total assets are only about 2.5 million US dollars, and the annual net profit is negative. This valuation is already very high.
Although the outside world is generally valued at US$100 million to US$150 million, they know in their hearts that this valuation is also the price after listing.
Genentech is already in the process of going public. They made internal estimates and looked for investment banks. The offer price that investment banks are willing to give is very low, which is based on a guaranteed market value of US$100 million.
At this time, the valuation given by Xia Yu was much higher than that of investment banks, which was equivalent to a 40% increase in stock price after listing.
And they don’t need to wait another half a year, nor do they need to lock up the stocks for a year. They can get the money in advance to invest in the companies they want to invest in, without having to take many risks!
Although there is still half a year, maybe Genentech will perform better and greatly increase the issue price, but this is not absolute.
Because Professor Herb Boyle is still engaged in research and development, Genentech has never been on the market. For scientific research, there are too many unknowns, and skipping votes is normal.
If Professor Herb Boyle did not develop the results on time, the patents that have been developed now are not enough to support Genentech’s ultra-high valuation.
The reason why Genentech’s valuation is so terrifying is precisely because the capital market has extremely high expectations for Professor Herb Boyle. Once this expectation is dashed, the bubble will burst!
As for whether they have confidence in Professor Herb Boyle, Harry Morrison and others will definitely say yes to outsiders, but they can't say whether they actually have it.
Experiments, scientific research, the probability of yielding results is too small, and it takes countless failures.
Throughout the ages, many scientific research results have appeared under unexpected circumstances.
Seeing the three of them hesitating, Xia Yu was sure in his heart and continued: ”Mr. Morrison, Mr. Swanson, we are here to negotiate with you sincerely, and we are holding a win-win attitude. I can talk to you calmly. Said that our Polaris capital is strong, we have the ability to take the risks of Genentech, and we have the patience to wait.”
”And you, Coller Perkins, need to give investors an answer. Their patience may not be very good. For Coller Perkins, it is best to specialize in angel wheels and A Round of venture capital, just like now, as long as you make one investment, you can get a hundredfold profit.”
”As for us, investing large sums of money will also make a lot of hard money. We are very happy to be able to double it.”
”You might as well think about it. We'll go back first and come back in the afternoon.”
After speaking, Xia Yu took a sip from his teacup, got up and took someone away.
Harry Morrison sent Xia Yu and others out of the door unwillingly, then returned to the office, closed the door, and said solemnly, ”You all heard it just now. What do you think?”
After speaking, Harry Morrison cast his sights on Robert Swanson.
As for the other person, Colin Hicks also subconsciously cast his sights on Robert Swanson.
In the Coller Perkins company, three people are the core, among them Harry Morrison and Colin Hicks are the founders.
And Robert Swanson, step by step from a low-level partner to where he is today, based entirely on his personal ability, and it was Genentech that was carrying him to his current position.
Whether or not to sell the equity, Harry Morrison has direct rights, but for the stability and unity of the company, he wants to give Robert Swanson some respect.
As the CEO of Harry Morrison, some things are hard to say, but Colin Hicks is an old partner with him. Naturally knowing the attitude of his friends, he took the initiative to stand up and say: ”After nearly four years, we have invested a total of Genentech is $367,000. If we follow the price of $35 million from Polaris Capital, we will get more than ninety-four times the profit.”