Here's their white-paper on their testing methodology: https://s3.amazonaws.com/color-static-prod/pdfs/validationWh... "Color has developed a next-generation sequencing based test for hereditary cancer. This test analyzes 30 genes associated with increased risk to develop breast, ovarian, colorectal, melanoma, pancreatic, prostate, stomach, and uterine cancers... The assay has a high degree of analytical validity for…
"Copy number variant" refers to larger deletions and duplications that can occur in the genome. There isn't some specific cutoff for size, but some examples in these kinds of genes would be an entire exon or gene. There are countless studies that find correlations between specific variants or CNVs and risk of cancers.
Standard variant detection is pretty straightforward. CNVs are harder because they are longer (several hundred to several thousand base pairs) than the raw data (150 to 250 bp for Illumina)- you don't get single reads that span the entire variant. You have to normalize then look for differences in coverage, or look for split reads (where the read is aligned on the border of one of these CNVs).
This kind of funding baffles me because they don't seem to be proposing anything new at all (maybe slightly better CNV detection?) and there are already lots of labs/companies doing this kind of testing. Maybe they are working on being very efficient to offer a better price.