54Gene

54gene was a genomics startup founded in 2019 to address the underrepresentation of African genetic data in global pharmaceutical research.^1234681516 The company raised $45 million across three funding rounds but shut down in 2023 after financial difficulties and leadership changes.^124781516 Following its closure, legal disputes arose between the founder and investors over the sale of its assets, including a biobank with genomic data from 100,000 Nigerians.^13151617

Timeline

Money raised

54gene raised $45 million across three funding rounds.^1234781516 In July 2019, 54gene raised a $4.5 million seed round.¹⁰ In April 2020, 54gene raised a $15 million Series A round led by Adjuvant Capital.⁹¹⁰¹² In September 2021, 54gene raised a $25 million Series B round led by Cathay AfricInvest Innovation Fund.⁸⁹¹⁵ 54gene's valuation dropped from $170 million at its Series B to about $50 million in a bridge round in 2022.⁹ The bridge round had a 3x to 4x liquidation preference.⁹ 54gene's assets, including the biobank, were reportedly priced at $3 million in the proposed sale.^13151617

Investors named in the sources: Y Combinator^3681015, Adjuvant Capital^{689101213151617}, Cathay AfricInvest Innovation Fund^6913151617, Andreessen Horowitz³, Gates Foundation³, Illumina Ventures⁶, Amgen Ventures⁶, Merck Global Health Innovation Fund⁶, HarbourVest Partners⁶, Fifty Years⁶⁸¹⁰, Better Ventures⁶¹⁰, Raba Capital⁶¹⁰, LAUNCH Africa Ventures⁶, Pioneer Fund⁶¹⁰, Ingressive Capital⁶⁸¹⁰¹⁵, KdT Ventures⁸⁹¹⁰, Endeavor Catalyst⁸⁹, Alta Partners⁸, Domain Associates⁸, Plexo Capital⁸, V8 Capital¹⁰, Aera VC¹⁰, Microtraction¹⁵, Future Africa¹⁵.

What happened

54gene was founded in 2019 by Dr. Abasi Ene-Obong and others.^1234681516 The company aimed to address the underrepresentation of African genetic data in global pharmaceutical research.^1234681516 Less than 3% of genetic material used in global pharmaceutical research was from Africa.¹²⁴ 54gene sought to build the world's largest pan-African biobank.⁶⁸ The company was accepted into Y Combinator in 2019.⁹¹⁵

In July 2019, 54gene raised a $4.5 million seed round.¹⁰ In April 2020, 54gene raised a $15 million Series A round led by Adjuvant Capital.⁹¹⁰¹² The Series A round included participation from Raba Capital, V8 Capital, Ingressive Capital, Y Combinator, Better Ventures, Fifty Years, KdT Ventures, Aera VC, and Pioneer Fund.¹⁰ 54gene launched a $500,000 fund to boost local testing capacity for coronavirus in 2020.¹⁰ In 2021, 54gene branched into diagnostics and set up Seven River Labs due to its success with COVID testing.²

In September 2021, 54gene raised a $25 million Series B round led by Cathay AfricInvest Innovation Fund.⁸⁹¹⁵ The Series B round valued 54gene at $170 million.⁹¹⁵ 54gene brought in at least $20 million in revenue from COVID testing.²¹⁵ In August 2022, 54gene laid off 95 employees, mostly contract staff in its COVID business line.⁹ In September 2022, co-founder and VP of Engineering Ogochukwu Francis Osifo left the company.⁹

In October 2022, Dr. Abasi Ene-Obong stepped down as CEO and was replaced by General Counsel Teresia L. Bost.⁹ In October 2022, 54gene conducted a second round of layoffs affecting over 100 staff, 55% of the remaining workforce.⁹ 54gene's valuation dropped from $170 million to about $50 million in a bridge round with a 3x to 4x liquidation preference.⁹ The bridge round was led by existing investors from the company's board.⁹ Teresia Bost left the CEO position five months after her appointment.²

Ron Chiarello became CEO in March 2023.¹²⁴ Ron Chiarello left the CEO role in July 2023.¹²⁴ 54gene initiated the winding down of its operations in July 2023.¹²⁴ By September 2023, 54gene's website was no longer accessible.¹²⁴ The PR agency that represented 54gene for much of its existence no longer worked for the company.¹²⁴

Ron Chiarello stated that the company could not continue to operate financially and began to wind down in July.¹² 54gene was looking for buyers to take over its assets, including its biobank.¹² Legal issues complicated the company's closure amid claims that several creditors remained unpaid.¹² Teresia Bost, the company's former legal counsel and one-time interim CEO, sued 54gene for discriminatory behaviour and creating a hostile work environment.¹² Bost alleged that her salary was slashed from $330,000 to $175,999, which she alleged violated her written agreement.²

Bost claimed she was told the company could be insolvent by September 2022 because of questionable spending by former executives.² 54gene still owed money to companies that supplied some of its medical equipment.² In 2025, Dr. Abasi Ene-Obong filed a petition accusing investors of orchestrating the company's collapse.¹⁵¹⁶ Ene-Obong alleged that investors blocked a $110 million rescue package and rejected his buyout offers.¹⁵¹⁷ A Federal High Court in Lagos issued an injunction blocking the sale of 54gene's assets in August 2025.^13151617

The assets slated for sale included the biodata of 100,000 Nigerians priced at $3 million.^13151617 The court case is still pending.¹⁵

Legal outcomes

• filedTeresia Bost sued 54gene for discriminatory behaviour and creating a hostile work environment.¹²
• filedBost alleged that her salary was slashed from $330,000 to $175,999, which she alleged violated her written agreement.²
• filedBost claimed she was told the company could be insolvent by September 2022 because of questionable spending by former executives.²
• filedDr. Abasi Ene-Obong filed a petition in July 2025 accusing investors of orchestrating the company's collapse.¹⁵¹⁶
• pendingA Federal High Court in Lagos issued an injunction blocking the sale of 54gene's assets in August 2025.^13151617

Where the founders are now

Dr. Abasi Ene-Obong launched Syndicate Bio, another genomics company, after leaving 54gene.¹⁴ Dr. Abasi Ene-Obong filed a lawsuit against investors over the collapse of 54gene.¹⁵¹⁶¹⁷

Sources

1. After raising $45 million, African genomics startup, 54Gene, shuts down, Business Insider Africa, 2023-09-27
2. Exclusive: After raising $45m in two years, 54Gene is shutting down, TechCabal, 2023-09-27
3. The Impact of 54gene, startupgraveyard.africa
4. Dabafinance - Nigeria-based biotech startup 54gene to shut down, Dabafinance, Sep 28, 20
6. 54gene: Headquarters, Global Offices & Leadership Team, highperformr.ai
7. Why 54gene Shut Down | Liners Graveyard, liners.com
8. 54Gene: Funding, Team & Investors, Startup Intros, Jul 13, 20
9. 54gene valuation slashed by over $100M amid job cuts and CEO exit | TechCrunch, TechCrunch, 2022-10-28
10. The race to bridge the gap in African genomics data research is winning investors over, Quartz, 2020-04-14
12. 54gene secures $15 m Series A funding - Tech In Africa, Tech In Africa, 2020-04-23
13. Dabafinance - Court Blocks Sale of 54gene Assets Amid Founder-Investor Legal Battle, Dabafinance, Aug 3, 202
15. Nigerian court blocks sale of 54gene's assets, TechCabal, 2025-08-01
16. Biotech star stuck in court over who controls its most valuable asset - Adams & Adams, Adams & Adams, 2025-09-17
17. Nigerian Court Blocks Sale of 54gene Assets, Techawk, 2025-08-05

How this case file was put together

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