The Startup Files - 23andMe
In The Startup Files I'll take a deep dive into an interesting startup business or founder story. This time: biotech startup 23andMe once best kid in class but recently filed for bankruptcy.
Key Points
23andMe recently filed for bankruptcy, with CEO Anne Wojcicki stepping down to pursue a buyout.
It seems likely the company faced financial struggles due to a 2023 data breach affecting 6.9 million users and declining sales.
The evidence leans toward weak demand for ancestry kits and ended research partnerships contributing to their challenges.
An unexpected detail is that potential buyers must comply with 23andMe’s privacy policies, raising questions about data security post-sale.
Bankruptcy Filing and Leadership Change
23andMe, a well-known genetic testing company, has filed for Chapter 11 bankruptcy protection to facilitate a sale process, as reported on March 23, 2025 (23andMe files for bankruptcy protection). This move came after CEO and co-founder Anne Wojcicki resigned, aiming to bid for the company herself, with Joseph Selsavage stepping in as interim CEO. This leadership shift highlights the company’s efforts to address ongoing financial difficulties.
Reasons for Financial Struggles
The company’s troubles stem from multiple factors.
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