23andMe was founded in 2006 by Anne Wojcicki, Paul Cusenza, and Linda Avey with the aim to offer genetic testing to their customers. The company set two primary goals, the first of which was empowering individuals to control their health by gaining access to their genetic information. The second purpose was accumulating data from genetic tests into a single database with the help of which healthcare professionals and researchers could create cures for illnesses. Also, 23andMe hoped that their option would be beneficial for government health agencies which could identify the population groups most threatened by some diseases and would encourage preventive measures.
In 2007, 23andMe expressed the intention to sell single nucleotide polymorphism (SNP) chip genetic testing kits straight to consumers. Two other companies announced such a plan: deCODE Genetics and Navigenics. The message was accepted with concern on the part of physicians since they were worried that there could be many cases of false positive and false negative results. Another issue was that customers might misinterpret the DNA tests, particularly when evaluating their risk of specific illnesses.
In a few years, both deCODE Genetics and Navigenics had been acquired, but new competitors entered the market, such as Pathway Genomics, BGI Shenzen, and Gene by Gene Ltd. In 2013, Angelina Jolie took the test and shared her results and apprehension with the public. Her example inspired millions of people to perform the test, find out about any serious genetic predispositions, and prevent their development into diseases.
The company’s funding came from several sources: Google Ventures, Johnson & Johnson, and venture capitalists. Apart from that, 23andMe won three grants from the National Institute of Health to investigate asthma and allergies. The organization collected $125 million by 2013. In December 2012, a new investor, Yuri Milner, added $59 million of financing, which allowed decreasing the test’s price from $299 to $99. As Wojcicki remarked, such a price opened a door of access for many people who wanted to live healthier lives.
The company’s customer acquisition was comparatively slow, with only 35,000 individuals buying kits by 2010. In 2013, the numbers grew, and research indicated people’s intention of performing the test in the nearest future. As of April 2013, 73% of the US citizens who had not purchased the test expressed the desire to take it soon. 70% of the survey’s participants expressed the desire to obtain data on health condition risks. 55% reported the willingness to change their lifestyles on the basis of results.
At the end of 2013, the FDA sent a warning letter to 23andMe informing the company that under the agency’s regulation, the kit was qualified as a medical device and not as a diagnostic or preventive instrument. To obtain the FDA’s approval, 23andMe decided to have one of its autosomal recessive carrier tests authorized, which would allow it to serve as a predicate device for other tests. Upon reaching the approval, 23andMe was relaunched in 2015. In 2017, a considerable milestone of 2 million customers was hit.