Startup Obituary : 23 and Me

23andMe was founded in 2006 by Anne Wojcicki, Linda Avey, and Paul Cusenza, with a mission to democratize access to genetic information and revolutionize healthcare. Wojcicki, the driving force behind the company and its long-term CEO, came from a background in healthcare investing on Wall Street, where she grew frustrated with a system she saw as focused on treating illness rather than preventing it. She has often spoken about her desire to empower individuals by giving them direct access to their genetic data, a vision rooted in her belief that people should have agency over their health decisions.

Linda Avey, a biologist with experience at Affymetrix (a DNA microarray company), brought scientific expertise and a shared interest in making genetics accessible. Paul Cusenza, with a mechanical engineering degree from the University of Michigan and an MBA from Harvard, contributed operational and strategic skills from his time in consulting and at Perlegen Sciences, another genomics firm. Together, the trio aimed to create a direct-to-consumer (DTC) genetic testing service that would not only inform individuals about their ancestry and health risks but also build a massive database for research.

Wojcicki has described the early days as a leap of faith, with no clear marketing plan or precedent to follow. In a 2023 Stanford Biodesign talk, she recalled, “I had no marketing plan and no sales strategy—mostly because there were no similar models to study—but I made sure 23andMe was grounded in science and ethics.” The company’s name, “23andMe,” reflects its focus on the 23 pairs of chromosomes in human DNA, symbolizing a personal connection to one’s genetic identity.

The Founders’ Vision

From the outset, the founders envisioned 23andMe as more than a testing service. Wojcicki, in particular, saw it as a platform to “crowdsource research” and shift the healthcare paradigm. She was inspired by patient advocacy groups like ACT-UP, which demanded a greater role for individuals in medical research. In a 2008 blog post titled “The Power of We,” she wrote, “We started 23andMe to enable individuals to get access to their genetic information… But we also started 23andMe to accomplish something that could impact all of us in a much greater way—to change the current research paradigm.” This dual focus—consumer empowerment and research acceleration—became the company’s cornerstone.

Avey shared this enthusiasm for consumer-driven science, emphasizing the potential to educate people about their DNA and accelerate medical discoveries. Cusenza, meanwhile, highlighted practical challenges like ensuring informed consent and preparing customers for unexpected results, such as health risks or ancestry surprises. In a 2024 Forbes article, he reflected, “Our goals included providing people with the ability to access their own genetic information and to interpret that information accurately.”

Early Challenges and Growth

The company launched its first product in 2007, offering genetic testing for $999—a price that Wojcicki later slashed to $399 in 2008 and eventually to $99 in 2012 to unlock broader demand. This move, she noted in a 2023 Sequoia Capital interview, was pivotal: “We sold 17-18,000 kits by the end of the day… that was all of our inventory.” Early funding came from high-profile investors like Google (where Wojcicki’s then-husband Sergey Brin was a co-founder), Genentech, and New Enterprise Associates, raising $8.95 million in 2007.

However, the founders faced logistical hurdles. Cusenza initially pushed for a Washington, D.C., base to be near regulators and the NIH, but Wojcicki and Avey, based in Silicon Valley, won out, settling in Mountain View, California. This decision shaped the company’s tech-centric culture but led to Cusenza’s departure in 2007, as he prioritized family life over a cross-country commute. Avey left in 2009 to pursue other ventures, leaving Wojcicki as the sole founder steering the ship.

Regulatory Battles and Resilience

A defining moment came in 2013 when the FDA ordered 23andMe to stop marketing health-related genetic reports, citing concerns over accuracy and consumer comprehension. Wojcicki’s initial brashness—she once kept a placard in her office reading “I’m CEO, bitch”—had led her to assume regulatory approval wasn’t necessary. The FDA disagreed, and the company faced an existential crisis. Reflecting on this in a 2017 Nature article, Wojcicki described it as a period of “soul-searching and strategizing.” Rather than fight, she chose compliance, spending two years validating tests to secure FDA approval in 2015 for carrier status and wellness reports.

This experience shaped Wojcicki’s perspective on balancing innovation with responsibility. In a 2021 WIRED interview, she said, “I’ve saved 23andMe from the brink of failure before… It’s about adapting to the challenges.” The FDA ordeal turned into a competitive advantage, making 23andMe the only DTC genetic testing company with such approval.

Evolution and Drug Discovery

Wojcicki’s vision expanded beyond testing to drug development, leveraging the company’s growing genetic database—over 12 million customers by 2021, with 80% opting into research. She has long been fascinated by the potential of genetics to “elucidate biology,” as she told WIRED in 2024. This led to the creation of a therapeutics division, with the first in-house drug, 23ME-00610 (an immune-oncology antibody), entering clinical trials in 2022. Partnerships with pharmaceutical giants like GlaxoSmithKline (GSK), which invested $300 million in 2018, underscored this shift.

However, the founders’ original research vision faced skepticism. Critics, like those cited in a 2013 Scientific American article, argued 23andMe’s real goal was to “hoard” data for profit, a charge Wojcicki has consistently rebutted, emphasizing transparency and customer consent.

Recent Struggles and Wojcicki’s Perspective

By 2025, 23andMe faced significant challenges. After going public via a SPAC in 2021 with a $6 billion valuation, its stock plummeted below $1, and the company filed for Chapter 11 bankruptcy in March 2025. Wojcicki resigned as CEO but remained on the board, expressing optimism in a 2024 Fortune interview: “I still think the startup is savable.” She attributed struggles to market saturation, privacy concerns post-2019 (exacerbated by a 2023 data breach affecting 7 million profiles), and the end of a lucrative GSK collaboration in 2023.

Wojcicki has framed these setbacks as part of a long-term journey. In a 2021 CNBC interview, she said, “I’m surprised to see plunging sales… but it’s about evolving into health.” Her persistence reflects a founder’s mindset of resilience, even as critics, including former executives in a 2024 Fortune piece, point to her “founder mode” as a source of inflexibility.

Founders’ Reflections

• Anne Wojcicki: Her narrative is one of idealism tempered by pragmatism. She told Stanford in 2023, “The future is dripping with possibilities,” envisioning 23andMe as a leader in personalized medicine despite recent woes.

• Linda Avey: Post-departure, Avey praised Wojcicki’s drive but pursued her own path with Curious, Inc., suggesting a divergence in focus after 2009.

• Paul Cusenza: In 2024, he told Forbes, “I meet people every week who thank me for the personal discoveries made from being a customer of 23andMe,” expressing pride in its impact despite his early exit.

23andMe Scorecard

Conclusion

From a founder’s perspective, 23andMe’s story is one of bold ambition—Wojcicki’s dream of a genetics-driven healthcare revolution—tested by regulatory, financial, and market realities. The founders’ initial vision of empowering consumers and advancing research remains intact, though its execution has evolved. Wojcicki’s journey, in particular, reflects a blend of naivety, adaptability, and unwavering belief in the power of DNA, even as the company navigates bankruptcy and an uncertain future.

Building a startup is like walking a tightrope—one wrong step, and you’re in a startup obituary. I hope this story helps you stay balanced and avoid the common pitfalls.

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Cheers,

Ram

StartupObituary.com 

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