In a huge fall, 23andMe, a DNA testing business, went from a valuation of $6 billion to almost nothing in 3 years.
According to the CEO, the problem with the business model was that people only need to take the DNA test once. There is no repeat business. (Did no one consider that before?)
[The article is behind a paywall. The summary excerpt is in the link here .]
23andMe went public in 2021 and its valuation briefly topped $6 billion. Forbes anointed Anne Wojcicki, 23andMe’s chief executive and a Silicon Valley celebrity, as the “newest self-made billionaire.”
• Now Wojcicki’s self-made billions have vanished. 23andMe’s valuation has crashed 98% from its peak and Nasdaq has threatened to delist its sub-$1 stock.
• Wojcicki reduced staff by a quarter last year through three rounds of layoffs and a subsidiary sale. The company has never made a profit and is burning cash so quickly it could run out by 2025.
• At the center of 23andMe’s DNA-testing business are two fundamental challenges. Customers only need to take the test once, and few test-takers get life-altering health results.
https://www.wsj.com/health/healthcare/23andme-anne-wojcicki-healthcare-stock-913468f4
mei
1 February 2024 12:00
2
That’s a pity. I love their site.
I think they’re still in business. They’re trying to make a go of subscription services.
mei
1 February 2024 12:09
4
Maybe like some other sites they could add some genealogy subscriptions. That would be a good match.
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