Session 13: February 19, 2008

HR Challenges

Guest: Sam Angus (Fenwick & West)

Quote of the Day

"Never, never, never, never give up." ~ Winston Churchill

Summary

Entrepreneurship is a team sport. What are the critical human resource issues for new ventures? The NanoGene case examines the big three: assembling a team, developing a compensation policy, and creating an innovative culture.

Required Readings (Policy on Required Readings.)

• Case:
• NanoGene [in the course reader]
• Visit available Fenwick & West's Start-ups and Venture Capital Publications
  • Read the latest quarterly "Trends in Legal Terms in Venture Financing" survey.
  • Review "Venture Capital for High Technology Companies"
• Watch the following short video clips:
• Jeff Hawkins (Palm) - Defining Company Culture
• Jerry Kaplan (egghead.com) - Personality of a Company - Establishing Culture and Values Early On
• Lynn Reedy (eBay) - Leadership Characteristics at eBay
• John Thompson (Symantec) - Measuring Success - You Measure What Matters

 

Study Questions (Policy on Study Questions.)

• Evaluate the founding team and the resources they bring to the venture. Independent of the equity ownership issue, what are two risks associated with this founding team? How would these risks be reduced if Paige Miller joined the team?
• Although Susan Stone (the local venture capitalist) likes NanoGene's technology and business prospects, she seems concerned by the equity split among the founders. It's exactly the same for all. What consequences for NanoGene might she fear from the present even equity split?
• You are Will Tompkins from the case. Given your assumptions about hiring plans and the option packages for new hires over the next 18 months (e.g., Paige, research assistants, scientists, and senior scientists), is the present employee stock option pool sufficient? If not, what would you do next?
• Assess the venture's progress on each of the issues discussed in the last section of the case, especially company culture.

Team Case Analysis (Policy on Case Analyses.)

• I [would/would not -- choose one] hire Paige Miller because ...