23andMe should have raised less capital
Today, 23andMe filed for bankruptcy, and its CEO Anne Wojcicki stepped down as CEO to pursue the company as an independent bidder. The company said it secured a debtor-in-possession financing, and financing commitment to continue operating.
It has been a 19-year run for the company, which got its start selling genetic tests to consumers without a physician’s note. The company has weathered its fair share of controversy. I was one of the journalists covering the company when the FDA fired off a warning letter to stop selling its tests. 23andMe rebuilt its relationship with health regulators, but it lost lucrative key partners, including pharmaceutical companies that provided ample financing to the company so they could use its data-set to develop new therapeutics. More recently, Wojcicki faced further well-publicized challenges with the company’s board of directors, which eventually led to all seven board members resigning en masse in September of 2024. It also faced cybersecurity challenges, including a hack that affected almost 7 million people. All in all, a very tough run.
It’s hard to believe that the company was once valued at $6 billion, backed by dozens of prestigious investors, including Sequoia Capital, Illumina and NEA, who plowed more than $1.1 billion into the company, per Pitchbook. 23andMe was once the darling of our industry, led by a charismatic female CEO, and positioned to be one of the early leaders in the booming field of consumer health.
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