23andMe's Fall
wsj.com
23andMe's Fall
1–10 of 282 posts
Re: 23andMe's Fall
#2Non-paywall link: https://archive.is/yqxZa
Re: 23andMe's Fall
#3> Roelof Botha, a 23andMe board member and partner at Sequoia Capital, said the company’s big-spending strategy made sense when money was cheap. Now that it isn’t, “we’ve had to trim and focus on a smaller number of projects.”
> Sequoia, which invested $145 million in 23andMe, still holds all its shares, he said. Today they are worth $18 million.
Interesting that they weren't forced to liquidate/distribute the shares to their LPs
Re: 23andMe's Fall
#4First of many mistakes that 23andMe took: fired the co-founder.
Re: 23andMe's Fall
#5I had not heard they went IPO. They are a penny stock now?
Looking at those financials... yikes. I am kind of shocked how poorly they are doing.
Re: 23andMe's Fall
#6> Roelof Botha, a 23andMe board member and partner at Sequoia Capital, said the company’s big-spending strategy made sense when money was cheap. Now that it isn’t, “we’ve had to trim and focus on a smaller number of projects.” > Sequoia, which invested $145 million in 23andMe, still holds all its shares, he said. Today they are worth $18 million. Interesting that they weren't forced to liquidate/distribute the shares…
That would impede their plan to sell 23andMe, including its DNA database, to China (or Russia, or Antarctica, or the next Martians that happen along).
Re: 23andMe's Fall
#7Seems like 23andMe is two businesses: consumer and a B2B data business.
The consumer side is clearly struggling because of the problems mentioned in the article (they only need one test in their life, public perception is bad because their security has had breaches). So this needs a pivot where you can change the public's perception from a one-time test to continuous health monitoring through blood markers or something similar, expand to tests other than genetic and make it a repeatable, accurate test that gives you more information (and obviously stop leaking people's data).
But why not focus on the B2B side? Sell access to their databases. I'm sure computational biology and/or pharma companies need this information. It makes sense to do vertical integration by manufacturing your own drugs, but not for a cash-strapped business that has little incoming revenue to sustain further development. Presumably they are selling their genetic data, but I don't get why it's not giving them a revenue stream. Let GSK manufacture the drugs using your genetic info, with a profit share for any drugs made this way. They mention a collaboration with GSK in the article, but why was this stopped?
Re: 23andMe's Fall
#8> Roelof Botha, a 23andMe board member and partner at Sequoia Capital, said the company’s big-spending strategy made sense when money was cheap. Now that it isn’t, “we’ve had to trim and focus on a smaller number of projects.” > Sequoia, which invested $145 million in 23andMe, still holds all its shares, he said. Today they are worth $18 million. Interesting that they weren't forced to liquidate/distribute the shares…
That would impede their plan to sell 23andMe, including its DNA database, to China (or Russia, or Antarctica, or the next Martians that happen along).
Why would russia or aliens ever pay for it, when they can just steal it?
Re: 23andMe's Fall
#9I had not heard they went IPO. They are a penny stock now? Looking at those financials... yikes. I am kind of shocked how poorly they are doing.
What happens when the company goes down? they will still have the DNA databases
Re: 23andMe's Fall
#10First of many mistakes that 23andMe took: fired the co-founder.
1 of the co-founders had access to an unlimited pool of personal capital (at least until personal issues curtailed that).
The other had an idea.
Make sure you are the co-founder with the sustainable advantage