The human genome project, which ran from 1990 to 2003, sequenced 94% of the human genome sequence. The final gapless assembly was completed earlier this year. This groundbreaking undertaking has been the foundation for opening up personalized medicine with therapeutics now able to be developed based on an actual patient’s genetic composition. This has also empowered individuals to learn about their predisposed genetic markers for disease and traits. Nucleus Genomics is a direct-to-consumer genetic testing platform that allows users to take control of their genetic data inexpensively. Medicine in many instances has been focused on rooting out potential diseases when making diagnoses after the fact and by enabling users to learn more about their susceptibility to disease it empowers people to make behavioral changes to minimize. The Brooklyn-based startup leverages Whole-Genome Sequencing (WGS) to provide a numerical assessment on genetic risk and disposition to an assortment of diseases and trait at a fraction of the cost of traditional testing methodologies. The company plans to launch publicly by the end of the year and envisions a future when the genome is accessible from your smartphone.
AlleyWatch caught up with Nucleus Genomics COO and Founding Partner Caio Hachem to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $17.5M, and much, much more…
Who were your investors and how much did you raise?
We raised $14M in Seed+ funding led by Alexis Ohanian at Seven Seven Six. Also in this round are Founders Fund, Shrug Capital, Hugo Barra, Alexandra Botez, Packy McCormick, Austin Allred, and many others.
They join our $3.5M seed round from December of 2021 led by Founders Fund, with participation from Adrian Aoun (CEO, Forward), Brent Saunders (CEO, Allergan), Patrick Hsu (Bioengineering Professor, UC Berkeley), and others.
Tell us about the product or service that Nucleus Genomics offers.
As a DTC genetic testing platform, Nucleus provides innovative genetic risk and disposition score analyses on a greater number of diseases and traits. We also believe in maximal data ownership and liberty by providing our users total autonomy over their genetic data.
What inspired the start of Nucleus Genomics?
Our mission is to empower people to take agency over their health so no one dies from preventable disease. That’s why the company is building a platform based on cutting-edge science, for a future where everyone has their genome in their pocket, complete clarity on their risks, and are empowered by personalized health measures.
When Kian pitched me this mission in June of last year, it immediately resonated with me as so many of us have faced the loss of loved ones at the hands of a preventable disease.
How is Nucleus Genomics different?
As sequencing prices continue to plummet (from $1B in 2001 to well below $1K today), Nucleus sees a world where there’s a human genome on every smartphone. Accordingly, unlike every other genetics company, Nucleus can combine polygenic scoring with rare variants analysis on whole genome data to provide the most comprehensive genetic analysis that’s ever been available in both a consumer and clinical setting.
What market does Nucleus Genomics target and how big is it?
We see a world where there’s a human genome on every smartphone.
What’s your business model?
Our model is direct-to-consumer with clinical oversight and we charge a subscription fee for users to access a health portal with their disease and trait reports. We also charge a fixed fee for whole-genome genetic tests.
What are your post-COVID office plans?
We opened our NYC office in May 2022 with most of the team on-site. Having said that, we do support a diverse team from across the world in a hybrid fashion, where we consistently try to fly them out to NYC every month or so until they are able to be with the team full-time. We believe there is no better way to build an early-stage company than with in-person collaboration, and intend to scale our team accordingly.
What was the funding process like?
We found a perfect partner in Alexis Ohanian at 776. Alexis’s deep expertise in building consumer companies and brands, combined with his passion for substantive change laid the groundwork for an organic partnership. We kicked it off so immediately that the deal was a natural extension. We are delighted that our current investors, including Founders Fund and Shrug, are doubling down this round as they see the potential for a once-in-a-generation company, on the backs of one of the greatest technological decrease in costs ever.
What are the biggest challenges that you faced while raising capital?
You really have to find the right person who you want to partner with. It’s not just about the capital they can provide, but their unique experience, accessibility, temperament, and passion. There are so many investors but very few are world-class and that’s the biggest challenge — ensuring you find the right lifelong partner who has your back for the next decade.
What factors about your business led your investors to write the check?
An eclectic mix of factors including our all-star team, fervent demand for our product, massive underlying decrease in costs, and unparalleled technical innovation.
What are the milestones you plan to achieve in the next six months?
Nucleus’s product will be publicly available in the next six months, enabling users who have done genetic testing, as well as the uninitiated, to engage in our cutting-edge genetic analyses.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Focus on providing value to your users by building a product they truly love and recommend to others (a great sign is when customers are asking to invest in your company). From here, work on becoming “default investable” whereby your metrics are good enough for a fundraise. If you are far from this, lower your burn significantly and work on improving your metrics while you try to reach product-market fit. Do not wait until you only have a couple of months of runway left before you start fundraising and do not optimize on valuation if you’re not in a position to do so (take into consideration the current market conditions where valuations have been slashed). However, optimize on partnering with the right investors, especially those who share your vision for the long-term and who have founder experience.
Focus on providing value to your users by building a product they truly love and recommend to others (a great sign is when customers are asking to invest in your company). From here, work on becoming “default investable” whereby your metrics are good enough for a fundraise. If you are far from this, lower your burn significantly and work on improving your metrics while you try to reach product-market fit. Do not wait until you only have a couple of months of runway left before you start fundraising and do not optimize on valuation if you’re not in a position to do so (take into consideration the current market conditions where valuations have been slashed). However, optimize on partnering with the right investors, especially those who share your vision for the long-term and who have founder experience.
Where do you see the company going now over the near term?
We are hiring for a few key positions in our science, operations, and engineering teams. Additionally, we are working on building out genetic testing infrastructure so anyone can order a genetic testing kit from our platform.
What’s your favorite outdoor dining restaurant in NYC?
Casa Mono.
