In the sprawling laboratories of 23AndMe’s Mountain View headquarters, a curious phenomenon is taking place far from public view. The genetic testing giant has been quietly acquiring and repurposing technologies from bankrupt companies, transforming what others deemed worthless into the backbone of their genetic analysis empire. As I walk through their facility, technicians eagerly showcase equipment bearing faded logos of defunct tech firms, now humming with renewed purpose.
“We don’t see failed technology; we see undervalued innovation,” explains Dr. Cassandra Winters, Head of Laboratory Operations at 23AndMe, as she demonstrates a blood plasma separator originally developed by the now-bankrupt Theranos. “What failed wasn’t usually the technology itself, but the business model or application. We’ve found immense value in these overlooked assets.”
23andme – The Hyperloop Connection
Perhaps most surprising is 23AndMe’s adaptation of acceleration tracking systems originally designed for Virgin Hyperloop One, which declared bankruptcy in December 2023. These high-precision sensors, initially created to monitor passenger pods moving at tremendous speeds, now track the microscopic movements of robotic sampling arms with unprecedented accuracy.
“The precision requirements for safely moving people at 700 mph are actually quite similar to what we need when handling thousands of biological samples,” notes Dr. Winters. “We’re achieving 99.998% accuracy in sample placement, which directly translates to fewer testing errors.”
This practical application of Hyperloop technology represents just one example of 23AndMe’s opportunistic approach. By acquiring these sensors at bankruptcy auctions for pennies on the dollar, the company estimates saving over $14 million in development costs while achieving superior performance compared to purpose-built alternatives.
23andme – Digital Resurrection
Beyond hardware, 23AndMe has become adept at salvaging valuable software and algorithms from tech company failures. When photo storage platform Lytro closed its doors in 2018, few recognized the potential applications of its light-field imaging technology beyond consumer photography. 23AndMe’s innovation team, however, saw an opportunity.
“Lytro’s computational imaging algorithms were revolutionary but commercially unsuccessful,” explains Trevor Hsu, Chief Digital Officer. “We’ve adapted their depth-sensing capabilities to analyze cellular structures in three dimensions, giving us insights into genetic expressions that flat imaging simply cannot provide.”
The company’s proprietary genetic visualization platform now incorporates code originally designed to let consumers refocus their vacation photos. That same technology helps researchers identify subtle patterns in genetic markers that might otherwise remain invisible.
Manufacturing Innovation
Perhaps most impressive is how 23AndMe has revolutionized its sample collection kit production using machinery acquired from Juicero, the infamous $400 juicer company that collapsed spectacularly in 2017.
“Juicero’s downfall wasn’t poor engineering—quite the opposite,” says Paula Martinez, VP of Manufacturing. “Their precision manufacturing equipment was overbuilt for squeezing juice packets but perfect for our needs. We’ve repurposed their hydraulic press systems to seal our collection tubes with unmatched consistency.”
This manufacturing innovation has reduced sample contamination by 78% while cutting production costs by approximately 40%. The company now produces over 75,000 collection kits daily using machines that once squeezed fruit packets for Silicon Valley executives.
Ethical Considerations
Not everyone applauds 23AndMe’s technological scavenging strategy. Critics point to potential intellectual property concerns and question whether the company adequately compensates the original inventors when acquiring bankrupt assets.
“We follow all legal protocols during bankruptcy acquisitions,” insists Hsu. “But we also maintain a ‘Creator’s Fund’ that tracks down original engineers and developers, offering them compensation when their technologies prove valuable in our applications.”
The fund has distributed over $3.2 million to date, providing unexpected windfalls to engineers whose former employers failed to commercialize their innovations successfully.
As other genetic testing companies struggle with rising development costs, 23AndMe’s approach to technological recycling represents an innovative competitive advantage. By seeing potential where others see failure, the company continues to expand its technological capabilities while maintaining cost efficiency—proving that sometimes, the most valuable innovations come not from invention but from reimagination.
