UBiome,one of Silicon Valley’s major health initiatives, said it had filed for bankruptcy after a five-month period. According to court documents filed with uBiome, who applied to US Bankruptcy Court in Wilmington, the initiative could lend millions of dollars to health insurance companies and face penalties and civil penalties for ongoing investigations.
UBiome, who sees 8VC and Andreessen Horowitzas their biggest investor, said he hoped to encourage an investor to buy because of his scientific knowledge of the microbiome, even if he was involved in research. The company’s CEO Curtis Solsvig also said in a statement that uBiome’s business would be better positioned with investments.
But let’s just say the company has been in serious trouble for some time. UBiome has been under federal investigation for billing practices for nearly five months, and more than half of its staff left their jobs earlier this summer. In addition, the employees who stayed inside said the company was in trouble from the very beginning.
During 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 reached $600 million in one period. 8VC now owns 20 per cent of the company, while Andreessen Horowitz owns 11 per cent of the bankruptcy application. The os fund’s ownership rate was not specified in the documents.
It is not yet clear when the company’s bankruptcy will end. However, uBiome said he intended to sell one of the tests by then.