Tuesday, July 17, 2012

Q: how do you turn $43M into $10M

A: start a retail personal genomics company.

Saw this (Life Technologies Buys Navigenics in New Gene Diagnostics Strategy story today, and while I have no idea of Navigenics really sold for $10M, I would bet a large amount that they sold for less than the $43M invested in Navigenics. The problem, as I see it, wasn't Navigenics' technology, but rather their business strategy to focus on retail genomics. You'd think that investors like Kleiner would know how expensive and difficult attracting consumers is, but their Internet bias drives them towards great tech, not great businesses.

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