Juno Diagnostics has developed a device which will cost about $10 to produce and can detect and read DNA from a few drops of bodily fluid. This technology has the capacity to transform the genetic testing industry. Current DNA tests are expensive and can take weeks or even months to yield results. With Juno’s technology, consumers will be able to get a wide variety of instant, highly accurate, and low-cost genetic test results in their own homes. Additionally, Juno’s technology can easily be adapted to screen for any foreign DNA present in the sample. This capability has applications in human disease testing and beyond.
Juno’s management has the skills and experience necessary to bring this technology to market successfully. The team previously worked together at Sequenom (SQNN), a highly successful innovator in DNA sequencing which was acquired by LabCorp in 2016 for $371 million. Juno’s first product will be an in-home prenatal gender test which yields highly accurate results almost two months earlier than an ultrasound. This test does not require FDA approval, giving Juno a potential fast track to positive cash flow. We estimate that the growing global market for prenatal DNA testing is already over $1 billion.
Zoic Investment Memo:
Zoic Value Add:
Zoic will add value through assisting the company in building a broad, high quality intellectual property portfolio and providing knowledgeable, strategic advisors.
Previous Round: $2.7M Subscribed
Ken Pelletier: Founding CTO of Groupon
Daniel Grosu: Former CMO of Illumina
John Pelletier: New England Biolabs
Zoic Capital: $400K previously
Expected Financial Terms:
Capital Investment: $1MM
Conversion Cap: $45MM on a $40-80MM round valuation
Form of Investment: Convertible note
Board Position: One Board Seat for Zoic
Acquisition with revenue of $25-45MM with high annual growth rate to a strategic buyer, Zoic approximates an exit of $100-200MM
IPO after annual revenue of greater then $100MM, a pipeline of non-invasive diagnostics, and growing at greater then 20% per annum, Zoic approximates an exit of $400-600MM