Genentech, and received a $2,500 per month salary, along with 25,000 shares. This marked the end of Swanson's unemployment, and the beginning of his career at Genentech. With funding secured, and the organizational structure formed, the first logical step forward was to begin experimenting with the procedure for the synthesis of insulin. Since Genentech lacked any laboratories of its own, the Boyer lab, as well as two other labs in the San Francisco area, were to be subcontracted to carry out the experiments. However, the scientists quickly realized that a step wise approach would be more practical; rather than immediately engineer a bacterium that synthesized insulin, they would engineer a bacterium that could synthesize somatostatin, a smaller hormone. Swanson resisted at first, since he believed that “If you are going to go for something, go for the real thing.” the "real thing" being insulin, in this case. He eventually agreed, albeit grudgingly. With a new research goal set up, Swanson proceeded to establish official research agreements with the institutions. He set up research agreements with the University of California and the City of Hope. Then, in early 1977, Swanson began a second round of funding, to jumpstart the somatostatin research. He raised approximately $850,000 by February, enough money to fund the somatostatin research projects. By August 1977, the research teams managed to create the first bacterium capable of synthesizing somatostatin. This was the proof of concept that the fledgling company sought. On December 2, 1977, Swanson and the scientists held a press conference announcing their findings. Following their success with the proof of concept, Swanson then directed the scientists to pursue the creation of a bacterium that synthesized human insulin. Two other scientific teams were already attempting to carry out such a project, but Swanson moved quickly to ensure that they synthesized it first. By early 1978, his priorities were to obtain a lab space for the scientists, corporate contracts, and more funding for Genentech. In order to attract the best scientists, Swanson, with the assistance of Boyer, tried to create an attractive environment for academic scientists. It was because of this that scientists at Genentech were allowed to publish their findings in scientific journals. The restriction was that they could publish only after the appropriate patents had already been filed. By February 1978, Swanson leased a 10,000-square-foot section of an airfreight warehouse, which would serve as Genentech's first lab