MSN/WSJ: 23andMe's Fall from $6 Billion to Nearly $0

[Montauk6]

Five years ago, 23andMe was one of the hottest startups in the world. Millions of people were spitting into its test tubes to learn about their ancestry. Oprah had named its kit one of her favorite things; Lizzo dressed up as one for Halloween; Eddie Murphy name-checked the company on “Saturday Night Live.” 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.

Silicon Valley’s fortunes were built on the lofty ambitions of entrepreneurs swinging for the fences—even if most of them strike out. Wojcicki, for her part, isn’t giving up. She’s sticking to her goal to transform 23andMe from a supplier of basic ancestry and health data into a comprehensive healthcare company that develops drugs, offers medical care and sells subscription health reports.

More: https://www.msn.com/en-us/money/companies/23andme-s-fall-from-6-billion-to-nearly-0/ar-BB1hxqd9?fbclid=IwAR0sUXxzz8P2QFt3WtM8FqPW-QMDBpVa1RqD9Pmx9tRY8rgsd6Sa64CGvqY#comments

[Old Crank]

1. Two problems with 23&me

First, probably most people who want to know have already had the testing done. So there is no continuous cash flow. 95% of users are likely one and done. I haven't bothered because my family tree goes through the British islands with no disruptions until around the Norman Conquest. My daughter did the test and she is 75% English/Irish and 25% Northern European Jewish. Something we already knew.

Second, the results are largely a curiosity. the same with ancester family tree sites. I'm on the Mormon one. But what do you do with the data? Hope that you are related to some one rich you can milk? So unless you can package the collected data into a product there just insn't much there as a business model.

I hope she pulled out some good cash for salary and bonus money.