23andme, a company that helps consumers understand and decipher their genomes, has raised a partial $11 million out of a $24.26 million B round of funding, according to regulatory filings. 23andme, which was co-founded by Google co-founder Sergey Brin’s wife, Anne Wojcicki, raised $9 million in Series A funding from Google, Genentech, New Enterprise Associates, and Mohr Davidow Ventures in 2007.
Now PEHub is reporting that Mohr Davidow Ventures divested its stake in 23andme after investing in a direct competitor Navigenics. Losing one of your main investors to a competitor is not a good sign. 23andme maps customers’ DNA and helps them find information about their ancestry and their risks of getting certain diseases (Michael tried it last year). Google ended up taking a $3.9 million stake in 23andMe in May 2007, after Brin had personally loaned the company $2.6 million. The debt was repaid after the Google investment. We’re curious as to how much, if any, of this round’s $11 million is Brin’s or Google’s money.
Also, we’d like to know why Mohr Davidow shifted its funds to a 23andme’s rival. Navigenics’ service is similar to 23andme’s with slight differences. For example, 23andme offers one package, priced at $399, to test your saliva. Navigenics offers two packages of testing priced at at $499 and $2,499, with the higher priced test including genetic counseling and testing for more health conditions. Most recently, California’s Department of Public Health issued cease and desist letters to 23andMe, Navigenics and 11 other genetic testing startups, mandating that the labs demonstrate that they have been certified by both the state and federal government, and, perhaps more importantly, that all genetic tests were ordered by a patient’s doctor, which is required by state law.