Anne Wojcicki, 52, in Palo Alto, California, is part of the US tech elite and is known for co-founding the personal genomics company 23andMe in 2006. She named the company after the 23 pairs of chromosomes in a human cell. The company experienced significant growth, reaching a peak valuation of over $6 billion after going public in 2021. Over the last weekend, the company filed for bankruptcy.
The Bankruptcy Key Data
However, 23andMe faced several challenges that ultimately led to its bankruptcy:
- Declining revenue: The company struggled to generate recurring revenue, as most customers only required a one-time DNA test.
- Data breach: In 2023, a significant data breach affected 6.9 million customer accounts, damaging the company’s reputation and raising privacy concerns.
- Failed privatization attempts: Wojcicki made multiple attempts to take the company private, but the board rejected her offers.
- Leadership issues: In September 2024, seven independent board members resigned due to differences with Wojcicki over the company’s direction.
- Financial struggles: By November 2024, 23andMe had accumulated $2.3 billion in debt with only $126 million in cash and cash equivalents.
The Case Narrative
On March 24, 2025, 23andMe (website) filed for Chapter 11 bankruptcy protection, and Anne Wojcicki (LinkedIn) resigned as CEO. The company is now seeking to sell its assets through a court-supervised process. Wojcicki has expressed interest in bidding for the company as an independent buyer. However, her previous attempts to take the company private were unsuccessful, with her latest offer valuing 23andMe at approximately $11 million, significantly below its current market value of $50 million.
Wojcicki married Google co-founder Sergey Brin in May 2007; they divorced in 2015. Brin and Wojcicki jointly run the Brin Wojcicki Foundation. Wojcicki’s current net worth is estimated at $150 million. While this is a substantial sum, it may not be sufficient to acquire all of 23andMe’s assets, which are estimated to be between $100 million and $500 million.
The Plan?
The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder (Anne Wojcicki on LinkedIn).
Why wasn’t the company able to find investors with the help of Anne and her connections to prevent bankruptcy? Well, several factors may have contributed to this decision:
- Scale of financial problems: The company’s debt of $2.3 billion far exceeded Wojcicki’s personal net worth and her capacity to raise fresh funds.
- Board resistance: The board’s rejection of Wojcicki’s privatization attempts suggests disagreements over the company’s valuation and future direction.
- Strategic considerations: Filing for bankruptcy may provide 23andMe with an opportunity to restructure its debt and operations more effectively than a personal investment could achieve.
In conclusion, while Anne Wojcicki has expressed her continued belief in 23andMe‘s potential, the company’s financial struggles, coupled with industry challenges and privacy concerns, ultimately led to its bankruptcy filing10. The future of the company and its valuable genetic data remains uncertain as it navigates the bankruptcy process.
