Nigerian startup closes after $45m raise, founder launches new venture

54gene, a Nigerian biotech startup with an ambitious goal of advancing African genomics, has begun the process of winding down its operations.

This development follows a tumultuous period marked by leadership changes, financial difficulties, and legal challenges.

Founded in 2019 by Abasi Ene-Obong, 54gene aimed to provide crucial genome information on Africans to aid global pharmaceutical companies in their drug discovery processes.

The startup successfully raised $45 million in three funding rounds, positioning itself as a pioneer in bridging the genomics gap in pharmaceutical research.

However, less than four years after its inception and despite its successful fundraising, 54gene encountered significant challenges that ultimately led to its closure.

The company’s revenues dwindled in 2022 and it laid off almost 200 employees. Its valuation also dropped by two-thirds, from $170 million when it raised its Series B, according to TechCrunch.

Founder and ex-CEO Abasi Ene-Obong stepped down from his executive role in October 2022 and was replaced by general counsel Teresia L. Bost. 

Over the past year, the company underwent three CEO changes, culminating in the departure of Ron Chiarello, who had assumed the role in March 2023. Chiarello told TechCabal the company faced financial difficulties and confirmed the winding-down process began in July.

“Unfortunately, the company could not continue to operate financially, and it began to wind down in July,” the publication quoted him as saying.

Pluboard learned 54gene is actively seeking buyers for its assets, including its valuable biobank, which contains a collection of biological samples crucial for research. The company’s website is no longer accessible.

The company’s closure is reportedly marred by legal issues, with claims that several creditors remain unpaid.

– A fresh start

Meanwhile, while 54 Gene winds-up, Ene-Obong has announced a new venture.

In a LinkedIn post, the former CEO of the company announced the launch of Syndicate Bio, with a primary mission to create robust datasets that have the potential to revolutionize drug discovery and development.

“I am happy to say that we have started Syndicate Bio to empower inclusive advancements in global genomics science. Syndicate Bio is a platform biotech, driving genomics and precision medicine initiatives across the world’s most diverse regions (starting in Africa, of course!),” he said.

Co-founders of Syndicate Bio are Jumi P. and Estelle Dogbo. Wubrest Bekele, Wissam Hamou, and Aminu Yakubu are part of its leadership, Ene-Obong said.