While Silicon Valley soared as a beacon of innovative technology, it also harbored numerous venture capital firms!
On a financial street in San Jose, Prestige Capital quietly emerged. Henry had initially considered naming it Williams Ventures, but the name felt overly long and complicated, leading him to prefer the more concise Prestige Capital.
He believed that, much like a person's name, Prestige Capital ought to live up to its reputation!
The company was still under renovation and, although it had been established, it would open its doors officially in due time. At present, the office remained empty, void of employees!
Having surveyed the place a few times, Henry was about to close up and leave, when two individuals approached.
Both were middle-aged men in suits—one tall and imposing, the other of medium stature, wearing glasses.
"Is there something I can help you with?" Henry inquired.
"Is this also a venture capital company?" the tall man asked.
Henry nodded. "Yes, this is a newly established venture capital firm."
"Newly established?" The two exchanged glances, registering their disappointment.
These two were the founders of Amgen Biopharmaceuticals—Dr. Rothman, the bespectacled one, and Tony Lambert, his tall partner. From its inception in 1980 until June 1989, after nine long years, Amgen finally developed its first product, "Recombinant Human Erythropoietin" (EPO)! EPO had received FDA approval for use in treating anemia caused by chronic renal failure and HIV infection. But the path for EPO was paved with challenges—it struggled in promotion, ultimately leaving Amgen unable to sustain itself. At this juncture, Johnson & Johnson capitalized on their plight, looking to acquire all overseas sales of the EPO for $19 million! However, Amgen Biopharmaceuticals rejected that offer, relentlessly seeking investments!
But the hope felt genuinely threadbare!
After nine arduous years of work resulting in a near product, securing funding felt daunting. Which investor would dare risk their capital!
Dr. Rothman and Tony Lambert had encountered many closed doors; as desperation loomed, they contemplated conceding to Johnson & Johnson's demands. Yet, by fate, they stumbled upon a venture capital firm and figured they might try it anyway, even if the odds were against them!
So, there was this meeting!
However, when they learned this venture capital firm was newly established, anxiety creased their brows. No recently founded venture capital firm would dare take the risk of investing in Amgen Biopharmaceuticals! Unbeknownst to them, this interaction would prove transformative—altering not just their lives but the future of the company!
In a prior life, Amgen Biopharmaceuticals suffered losses due to being cornered by Johnson & Johnson, depriving them of many early profits. Yet, even so, it would grow to become one of the world's leading biopharmaceutical firms—driving advancements in human genome research, cancer treatment, neuroscience, and small molecule chemistry—eventually attaining a market cap of over $100 billion!
Perhaps the development of genetic evolution medicine lay on the horizon!
With a calm demeanor, Henry sought to learn about their identities. Upon hearing their answers, although his expression did not shift, he felt an internal jolt!
"Your company intends to raise capital?" Henry asked nonchalantly.
"Yes!" The two nodded eagerly.
Henry ushered them into a conference room and smiled broadly. "It seems fate has brought us together! You are our first clients to walk through the door; therefore, regardless of the outcome, we intend to make an investment in your company!"
Rothman and Lambert exchanged astonished glances.
Henry poured them glasses of water, then asked, "So, how much do you wish to raise?"
They fell into thoughtful silence, calculating how much would be appropriate. Asking for too much might scare investors away, while anything too little would merely be pocket change. After facing so much dejection recently with no firms willing to invest in them, they thought carefully. Yet, they were wary of deterring their first glimmer of hope!
Finally, Rothman tentatively suggested, "Ten million?"
At that moment, Henry leaned forward, startled by the figure. Seeing this, Rothman hurriedly corrected himself, "Eight million would be acceptable!!"
"Yes, yes, we can secure eight million from you!" Lambert chimed in, nearly frantic.
Henry was speechless; he leaned forward due to their absurdly low expectations. How was it possible to gain substantial shares from such a tiny investment? He simply leaned forward to gauge their reaction!
"Alright then," Henry began, "I'm prepared to invest $100 million in your company for 80% of the shares!" he asserted, creating a show of authority.
"No, no, we don't require that much!" The two felt as though they were on a roller coaster, experiencing the dizzying heights of elation soon followed by steep drops of disbelief! However, the vast potential of their company led them to be hesitant about releasing too many shares.
"In that case…" Henry pondered briefly before asking, "Have you previously accepted venture capital?"
"Initially, when we established the company, a VC invested $19 million in us!"
"How much equity do they possess?"
"Forty-five percent."
"Ah, that makes things easier!" Henry smiled. "What if you persuaded them to sell me their shares? I will then help you raise funds for your company!"
Rothman and Lambert exchanged low murmurs before finally nodding, "No problem; I can speak with them, but I can't guarantee whether they'll agree to sell!"
"Don't worry. They'll definitely sell!" Henry assured himself.
Amgen Biopharmaceuticals had a narrative with investors akin to chronic indigestion; after burning cash for nine years to get a product to market, they faced crippling difficulties in securing funds.
Faced with such dire circumstances, surely even investors would be eager to cash out for liquid assets!
Once Rothman and Lambert left the meeting, they engaged in discussion.
"Lambert, do you think this company could be a mere façade? Does he truly intend to invest in us?" Rothman questioned, skepticism creeping into his voice.
Lambert frowned slightly in uncertainty. "I'm unsure! I think we ought to look into this company further!"
Shortly thereafter, Rothman and Lambert unearthed Prestige Capital's details through informal channels: "Prestige Capital was formally registered on July 1, 1989, in San Jose, California, with a capital of $500 million. However, the legal entity is based offshore!"
"Many companies structure themselves offshore to evade taxes and retain investor anonymity. Regardless, if Prestige Capital carries weight, we might have a shot!" Rothman replied.
"Absolutely," Lambert affirmed. "Let's go convince those investors right away!"
Rothman nodded affirmatively.
A week passed, and Henry's impatience grew; was something amiss? Could they be struggling to communicate?
That couldn't be—surely not!
Henry began pacing the office, pondering whether he should reach out to them first.
Just then, his phone rang. It was Rothman.
"Hello, this is Dr. Rothman, CEO of Amgen Biopharmaceuticals!"
"Oh, Dr. Rothman, hello! Are they prepared to give up their shares?" Henry's tone was calm, but inside, he felt a whirlwind of nerves.
"They're willing to relinquish their shares, but the price may be steep…"
"How much do they want?"
"One hundred million!" Rothman said, "They've stated they'd be glad to part with their equity for $100 million!"
"I agree…"
Before Rothman could continue, he suddenly jolted with realization. "What!! Mr. Williams, you actually accepted?!!!"
"Yes, I'm ready to invest $100 million for their shares and additionally raise $50 million for the company, which would grant me a 70% stake. How does that sound?"
Rothman swallowed hard, stunned into silence. "Alright! I'm in!"
Hearing that, Henry realized he had just taken a monumental step toward becoming the proprietor of a leading high-tech biopharmaceutical company globally!
Three days later, Henry sat at a table with Rothman and the venture capitalist, penning two checks—one for $100 million and the other for $50 million. At that moment, Amgen Biopharmaceuticals was officially under Henry's umbrella! Although Henry lacked expertise in biotechnology, he was confident he could offer funds, contacts, and promotional resources to bolster Amgen's development. With Henry by their side, Amgen Biopharmaceuticals would fare better than it ever had before!
What remained uncertain was just how far Amgen would progress with Henry's involvement. Would they break new ground in genetics, achieve black technology breakthroughs, and potentially develop genetic evolution drugs? If so, a new breed of superman could emerge—how incredible that prospect would be!