kins and his team tried to formulate the future strategy for the company, he held meeting with Susan Stone, a venture capitalist, whom Tompkins wanted to become the lead investor in the company. Apart from this the founding team wanted to recruit Paige Miller as VP (operations) of NanoGene. The founding team members wanted Miller on board as she had experience in Life Sciences industry, after graduating from Harvard Business School in 1995.
However, Ms Miller was supposed to join the management team, not as a founding member of the company. In addition, size of the founding team was considered to be big by the VC Stone. This view was expressed by other VCs also, who thought that apart from being too large size the founding team had no member, who had any experience of commercialization, as none worked in a company, prior to this.
Since compensation, be it for employee or any founding member, is directly related to the venture funding; Stone had concerns about the equity distribution pattern among the members and salary for CEO, apart from size of the team being more than normal three. Tompkins discovered during his meeting with her that the compensation of $120000 was low for CEO, while the other members should be treated as senior scientists with a compensation figure of no more than $95000. However, resolving this issue could not be any easy task, as Mark Masterson earned $90000, before the team founded the new company, while Tompkins earned $80000. Ravi Rhoota and Garfield earned $65000 and $55000 respectively. Considering the support of Ruport to the newly founded venture, an Angel investor agreed to arrange an investment of $60000, having a post-money evaluation of $2.5 million. Accordingly, the founders agreed on the financing pattern for their own investment. This schedule included immediate funding, equally distributed, to the tune of 20%, followed by same percentage towards the end of first year and balance investment of 60% to be covered at the rate of