Benchmarking Analysis: Gene One profile
Gene One is a biotech industry. It created a technology that eliminates the need for pesticides for tomato and potato crops. This environmentally friendly gene transformed Gene One into a $400 million company in just eight years. Gene One aims at 40% growth in 36 months, thus, it needs an IPO to respond to the demand and meet their targets. The venture capital will allow Gene One to develop new technologies, increase their exposure, and strengthen the brand. The CEO, Don Ruiz, received board approval and is poised to implement his plan with the help of his senior executives. Similarly, other companies that have reached the growth of Gene One ...view middle of the document...
Facebook just hired Reed Hastings, Netflix CEO. He was also member of Microsoft Corp.’s board of directors. Along Hastings, Facebook’s current board sits Marc Andreessen of Andreessen Horowitz, Jim Breyer of Accel Partners, Donald E. Graham (chairperson) and CEO of The Washington Post Company; also Peter Thiel of Clarium Capital and Founders Fund (Facebook, 2011).
According to the WSJ’s Shira Ovide (2011), Facebook is evaluated today at $100 billion, matching few fortune companies with such prized position (2011). Although Zuckerberg has been “non-committal” (para. 7) to an IPO deadline, Facebook have approached some banks to “shepherd the IPO” (para. 6).
Gene One and Facebook
Similar Issues. As indicated by the board, Gene One is cleared to structure itself for an IPO. The Facebook synopsis mirrors a similar situation. An IPO date for Facebook is eminent as soon as April, 2012 because Facebook is aimed to reach 500 shareholders in the coming quarters of 2011 (Tapscott, 2011). The law requires companies with about or more than 500 shareholders to either disclose all financial data or go public (Tapscott, 2011).
Reaction. Mr. Zuckerberg has flirted with venture capital investors and banks to stage an IPO; it has received $500 million from Goldman Sachs and Digital Sky Technologies (Tapscott, 2011). Similarly to Gene One, an IPO seems a viable path for exponential growth, it will attract venture capital to upgrade its research power and respond promptly to biotechnological breakthroughs that would be outside its scope otherwise (University of Phoenix, 2011).
Outcome. The outcome for Facebook is an increased outpouring of affiliations coming from ads revenue (at 18%),...