uBiome - From $105M raised to an FBI raid that led to bankruptcy!

uBiome, Inc. was a biotechcompany based in San Francisco that whose main product analyzed gut microbes in patients with long-term intestinal disorders. Founded in 2012, the company shut down in 2019 following an investigation into possible insurance fraud.

uBiome - From $105M raised to an FBI raid that led to bankruptcy!

uBiome provided clinical tests that sequenced the DNA of human microbiome samples, providing data on health conditions directly to consumers or to prescribing physicians.

Founded in 2012, the San Francisco-based startup raised $105 million from top-tier venture capital firms and recruited prominent biotech executives and scientists as board members and advisors.

In April 2019, the FBI raided uBiome's offices to investigate claims that the company had repeatedly billed individuals without their consent to meet aggressive revenue targets.

uBiome's cofounders/co-CEOs resigned soon afterward. The company declared bankruptcy later that year after a board committee concluded that management had indeed pursued policies of questionable legality, including improper insurance billing practices, improper use of a telemedicine physician network, overly aggressive marketing tactics, and the presentation of misleading information in fundraising pitches.

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