Entire board of this startup resigned on same day. Founder says saving it is 'absolutely complicated'

Anne Wojcicki, founder and CEO of 23andMe, said, 'Part of the challenge I find as a leader is that you'll make a decision, and based on the information you had at that time, that seemed like the right decision, and a couple of years later, it becomes clear that it's wrong.' (Image credit: AFP)

In September, all members on the board of San Franciso-based DNA-testing company 23andMe resigned en masse following a month-long battle over co-founder and CEO Anne Wojcicki’s plans to take the company private. The 51-year-old, who controls 49.75 percent of 23andMe's voting rights, is now the only board member left. In a public letter, the board members—which included leaders such as Youtube CEO Neal Mohan, and head of Sequoia Capital Roelof Botha—wrote that while they “wholeheartedly” believed in the company’s mission to personalise health care with genetic data, they disagreed with Wojcicki’s strategic direction.

Now, speaking to Fortune, Wojcicki said that she could maneuver the startup away from the difficult position but admitted that the process is "absolutely complicated”.

Since going public in 2021, 23andMe has never turned a profit, Fortune reported. Its price on IPO day was $10 (Rs 840); so far in 2024, it has yet to reach a $1 (Rs 84) valuation. Following the resignation of all its board members, the stock fell to its rock bottom: $0.30 (Rs 25). Meanwhile, the company’s valuation dropped from $6 billion in 2021, to under $150 million and sales had slowed and a massive data breach triggered privacy fears. Its drug discovery business was also shut down because it was draining the company’s resources. That's when Wojcicki pushed for a plan to buy the company and take it private, but the board rejected her initial proposal, which didn’t offer shareholders a premium.

Since she controlled 49.75 percent of the startup's voting rights, the board was locked in a standoff and eventually resigned, something that is almost unheard of in the startup world.

“I’ve always said ever since the very beginning, I don’t need to be in charge,” Wojcicki told Fortune. “There’s no ego for me. I care about the vision and the mission.”

She added that her extra voting rights as recognition of her dedication to the company’s success.

As a leader, the founder-CEO said she has had to lead the company through the biotech market collapse, the Covid pandemic, and increased competition. “I’m sure we’ll spend a lot of time reflecting about what we could have done in a different way,” she said. “I think we can navigate and land this plane... but it is absolutely complicated.”