23andMe, founded in April 2006 by Linda Avey, Paul Cusenza, and Anne Wojcicki, provides at-home, consumer genetic testing. The company was the first FDA-approved direct-to-consumer genetic sequencing supplier. More recently, 23andMe has leveraged its genetic database in pursuit of pharmaceutical drug development. Since 2011, the company’s database has expanded at a compound annual growth rate of ~78 percent.
23andMe has raised over $790 million through multiple funding rounds from major investors such as Sequoia Capital, G Squared, Genentech, and GlaxoSmithKline (GSK), to name a few. The company has enjoyed steady growth by forging partnerships with several pharmaceutical development companies. Given the intimate nature of the data they collect, coupled with cyber security breaches known to have happened at other firms, 23andMe must safeguard user data or risk its reputation. We believe, if 23andMe pursues a public offering in the future, investors will look for how it positions itself to benefit from the immense amount of information it collects while defending against the many risks such information poses.