One of Silicon Valley's major health initiatives ubio to, 5 months after the process could not bear any more declared bankruptcy application. According to court documents from uBiome, who applied to the US Bankruptcy Court in Wilmington, the initiative may lend millions of dollars to health insurance companies and may face criminal and civil penalties for ongoing investigations.
8VC and Andreessen HorowitzuBiome, who considered it to be one of its biggest investors, said it hoped to encourage an investor to buy it, even with research, because of its scientific knowledge of microbiome. the Company CEO Curtis Solsvig uBiome's business would be better off with investments, he said.
However, the company has been experiencing serious problems for a while. Because uBiome has been under federal investigation for billing applications for about 5 months, and more than half of its staff left their jobs earlier this summer. In addition, the remaining employees said that the company was in trouble from the very beginning.
Over its seven-year history, uBiome has raised $ 105 million from high-profile investors such as Andreessen Horowitz, 8VC and OS Fund. The company's valuation even reached $ 600 million for a period. While 8VC now owns 20 percent of the company, Andreessen Horowitz owns 11 percent of the bankruptcy application. Ownership rate of OS Fund was not specified in the documents.
It is not yet clear when the company will go bankrupt. However, uBiome supporters said they had aimed to sell one of the tests until then.