Once-hot DNA testing unicorn 23andMe is in serious trouble
Silicon Valley DNA testing company 23andMe, which has raised nearly $800 million in funding and was last valued at $2.5 billion, cut 14% of its workforce last week.
The cause is a slowdown in sales of its direct-to-consumer DNA kits, which run $100, $200, or $500 depending on how much information you want about your ancestry, genetic composition, health and wellness, carrier status, and vulnerability to certain diseases.
It isn’t just 23andMe. DNA tests went boom in 2018, with the number of consumers who had bought one doubling to 26 million; now sales have gone bust.
MIT Technology Review estimates that the largest DNA test players sold just 4 million to 6 million DNA tests in 2019, an industry growth rate of 20%, the slowest year for the industry ever.
In July on its 2019 Q2 earnings call, the CEO of DNA analysis device-maker Illumina (ILMN) said the “ongoing weakness in the DTC market has resulted in a significant shortfall in our array business” and that “given unanticipated market softness, we are taking an even more cautious view of the opportunity in the near term.”
So Ancestry, 23andMe, FamilyTree DNA and many other small companies are all hurting.
But 23andMe, with its hefty valuation and unicorn status, has perhaps the most pressure on it, with backers that include GlaxoSmithKline and Fidelity. And what’s particularly troubling is that its star CEO Anne Wojcicki (sister of YouTube CEO Susan Wojcicki and ex-wife of Google cofounder Sergey Brin) does not know what the precise problem is or how to fix it.
The problem could be consumer privacy concerns, which are running high after Equifax, Cambridge Analytica, reports about audio data collected by smart speakers like Amazon Echo, and countless other breaches or scandals that have stoked people’s fears about their personal information. (In 2013, 23andMe had to halt sales of its health testing kits for two years due to an FDA probe; that year, Scientific American called 23andMe “terrifying.”)
23andMe also gets occasional requests from law enforcement for customers’ personal information, and warns in a section on its site, “We have to comply with valid governmental requests and we will notify the affected individual(s), unless the legal request prevents us from doing so.” A separate transparency section of the site says the company has never yet shared customer data with the government despite receiving seven requests.
23andMe, along with its partner-in-crime ancestry, are for losers!
Yes, I say that because unless you suspect that you're a lost Rockefeller (as in the third billionaire generation of Nelson, David, Winthrop, JDR III, Laurence) and can cash out on it, you're a fool.
Here's why, you were born into a particular family, grew up, came of age, and then, started on a life. Now, you know who your parents a/o legal guardians are and thus, you either have a relationship with them or not. And for the most part, that's where the nature/nurture thing comes to a close.
But then, these bozos show up and tell you that perhaps you've descended from Lord Barron Gloucester of Lincolnshire and suddenly, you feel good about yourself because even though your career sucks and are twice divorced (constantly being stalked by an ex or two), at least you can brag about that some distant great great great great granduncle had some land and whipped some peasant boys in the woods of England. Great, you're an aristocrat.
I sometimes wonder if these DNA tests are rigged by the Globalists. Show everybody they have pan-racial DNA which they didn't expect, so they become more tolerant: "What, I have Black/Arab/Irish/Jewish/Pakistani/Indian etc. genes? I guess I need to be more forgiving!", while using the actual DNA results for surveillance, cross checking and monitoring.
https://www.sfchronicle.com/bayarea/article/These-Bay-Area-residents-had-their-DNA-tested-13836225.php