👉 Background: 23andMe is a personal genetic testing company that was the first company to offer direct-to-consumer genetic testing in 2007. It's a pretty simple process - you spit in a test tube, send your saliva back to 23andMe, they can tell you a whole host of things about your DNA — 3% Viking, 12% Italian, and somehow related to a goat herder.

‍👉 What happened: Given 23andMe literally holds the unique DNA of each of its customers, strong data privacy has been a key to its business. Over the past few years 23ndMe has struggled to find a profitable business model… particularly since going public back in 2021. Now, 23andMe has filed for Chapter 11 bankruptcy in the US.

‍👉 What else: The administrators have announced that they will be looking to sell “substantially all of its assets” of 23andMe— including its highly highly highly confidential data. And this has customers concerned about where their confidential DNA data could land.

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‍What's the key learning?

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‍💡In today’s economy, data is often referred to as the “new oil”. And companies like 23andMe have built entire business models around collecting it, analysing it…and of course monetising it.

💡Sometimes it can be used for research with pharmaceutical companies or ad partnerships, but in tougher times, it can even be sold off. The risk is that when a business fails, that confidential data can become part of the liquidation process — just like office chairs or lab equipment. And for customers, it’s a serious privacy risk.

💡We’ve also seen risks of sensitive data being shared/leaked in Australia recently when hackers stole the personal info of Medibank customers. The names, contact information and health records of nearly 10 million current and former customers were compromised. So it’s a little reminder that sharing your confidential data with any company carries its risks.