Both parties also expect maximum revenue to be set at $420 million, with an operating margin of 65% and an introductory cost of $60 million. Calculated with a discount rate of 22 percent, the value of the project is $US 1 million. The university is aiming for 3-4 percent royalties and some increasing steps. With the advance, the biotech company already buys a first part of the project from the university. An advance payment of $200,000 will therefore result in a 20% stake in NewCo. NewCo`s subsequent funding to end the discovery phase, in the amount of $1.5 million, is equivalent to a capital increase from NewCo. Its value is increasing from $1 million to $2.5 million, of which US$1.7 million (the 200,000 $US shares purchased and the capital increase of $US 1.5 million as a single investor), or 68 percent. And since from that date, profits are more or less defined as an operating revenue margin, the royalty should correspond to the margin of ownership…