Inside the fall of 23andMe

Published

1 year ago

October 23, 2024

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Nasdaq Jeff Thomas Senior Vice President and Anne Wojcicki, 23andMe Co-Founder & CEO pose with an opening ceremony gift before the remote ringing of the NASDAQ opening bell at the headquarters of DNA tech company 23andMe in Sunnyvale, California, U.S., June 17, 2021.

Peter DaSilva | Reuters

Once worth $6 billion, 23andMe has lost 98% of its value and is on the verge of being delisted from the Nasdaq after all of its independent board members resigned in September. So what happened?

Founded in 2006, 23andMe set out to revolutionize the once very exclusive genetic testing business with a direct-to-consumer model. Thanks to capital from high-profile backers and celebrity endorsements, the company was able to market its test kits at affordable prices.

Unlike competitors like Ancestry.com, 23andMe sought to leverage its database for drug discovery. The company went public in 2021 and was valued around $3.5 billion. The funding allowed 23andMe to develop its drug research team and spearhead partnerships with pharmaceutical companies.

“We’re really at a point in time where I’m ready to explode,” 23andMe CEO Anne Wojcicki told CNBC in 2021. “There’s huge opportunities in therapeutics and huge opportunities in our consumer business.”

Shortly after debuting on the Nasdaq, rising interest rates made it more difficult to raise funding, and sales began to fall. The company introduced a premium subscription product in 2020 that it hoped would make up for the lack of recurring revenue from its test kits, but that strategy failed to pan out. The company reported a $312 million net loss in the 2023 fiscal year, and by September 2023, 23andMe’s share price slid below $1.

Besides the financial concerns surrounding 23andMe, privacy concerns around the company’s genetic database have also ramped up. In October 2023, hackers accessed the information of nearly 7 million customers.

Asked by CNBC what would happen to 23andMe’s database if the company is sold or taken private, a company spokesperson said that Wojcicki has publicly shared that she intends to take the company private and is not open to considering third-party takeover proposals.

“Anne also expressed her strong commitment to customer privacy, and pledged to maintain the company’s current privacy policy, including following the intended completion of the acquisition she is pursuing,” the spokesperson said in an email.

Wojcicki submitted a proposal to take the company private in July, but it was rejected by a special committee formed by the company’s directors because the proposal did not provide a premium to the closing price of 40 cents per share at the time.

When 23andMe’s independent directors resigned in September, they cited frustration with Wojcicki’s “strategic differences” in her vision for the company.

Now, 23andMe faces a Nov. 4 deadline to keep its share price above $1 and locate new board members in order to remain listed on the Nasdaq. Watch the video above to learn more.

Technology

Figure AI sued by whistleblower who warned that startup’s robots could ‘fracture a human skull’

Published

6 hours ago

November 21, 2025

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$Figure AI sued by whistleblower who warned that startup's robots could 'fracture a human skull'$

Startup Figure AI is developing general-purpose humanoid robots.

Figure AI

Figure AI, an Nvidia-backed developer of humanoid robots, was sued by the startup’s former head of product safety who alleged that he was wrongfully terminated after warning top executives that the company’s robots “were powerful enough to fracture a human skull.”

Robert Gruendel, a principal robotic safety engineer, is the plaintiff in the suit filed Friday in a federal court in the Northern District of California. Gruendel’s attorneys describe their client as a whistleblower who was fired in September, days after lodging his “most direct and documented safety complaints.”

The suit lands two months after Figure was valued at $39 billion in a funding round led by Parkway Venture Capital. That’s a 15-fold increase in valuation from early 2024, when the company raised a round from investors including Jeff Bezos, Nvidia, and Microsoft.

In the complaint, Gruendel’s lawyers say the plaintiff warned Figure CEO Brett Adcock and Kyle Edelberg, chief engineer, about the robot’s lethal capabilities, and said one “had already carved a ¼-inch gash into a steel refrigerator door during a malfunction.”

The complaint also says Gruendel warned company leaders not to “downgrade” a “safety road map” that he had been asked to present to two prospective investors who ended up funding the company.

Gruendel worried that a “product safety plan which contributed to their decision to invest” had been “gutted” the same month Figure closed the investment round, a move that “could be interpreted as fraudulent,” the suit says.

The plaintiff’s concerns were “treated as obstacles, not obligations,” and the company cited a “vague ‘change in business direction’ as the pretext” for his termination, according to the suit.

Gruendel is seeking economic, compensatory and punitive damages and demanding a jury trial.

Figure didn’t immediately respond to a request for comment. Nor did attorneys for Gruendel.

The humanoid robot market remains nascent today, with companies like Tesla and Boston Dynamics pursuing futuristic offerings, alongside Figure, while China’s Unitree Robotics is preparing for an IPO. Morgan Stanley said in a report in May that adoption is “likely to accelerate in the 2030s” and could top $5 trillion by 2050.

Read the filing here: