Connect with us

Technology

All the reasons 2018 was a breakout year for DNA data

https://www.technologyreview.com/s/612688/all-the-reasons-2018-was-a-breakout-year-for-dna-data/

Published

on

Genetic IQ tests. DNA detective work. Virtual drug trials. These were some of the surprising new uses of DNA information that emerged over the last 12 months as genetic studies became larger than ever before.

Think back to 2003. We had just decoded the first human genome, and scientists still spent their time searching for very specific gene errors that cause quite serious inherited problems, like muscular dystrophy. Now, though, we’re dealing with information on millions of genomes. And the gene hunts are not only bigger—they’re fundamentally different. They’re starting to unearth the genetic roots of common illnesses and personality traits, and they’re making genetic privacy all but impossible.

Here are the trends you need to know, from MIT Technology Review’s own coverage over the last year.

Consumers: It’s all about genetic data. Now it’s being collected on millions of people, in national efforts and commercial ones too.

Last February, we reported that 12 million people had already taken consumer DNA tests. Since that figure has been reliably doubling every year, it’s probably up to 25 million by now. In fact, DNA reports are now a mass-appeal item. During the Thanksgiving weekend, the gene test from AncestryDNA, which tells people where their ancestors are from, was among the top-selling items.

Big data: To understand the genome, scientists say, they need to study as many people as they can, all at once. In 2018, several gene hunts broke the million-person mark for the first time. These included searches for the genetic bases of insomnia and educational success. To do it, researchers tapped national biobanks and also got help from 23andMe, the popular gene test company, whose users can sign up to participate in research.

Polygenic scores: Some diseases are due to a single gene that goes wrong. But big killers like heart disease aren’t like that—instead, they’re influenced by hundreds of genetic factors. That’s why a new way of predicting risks from a person’s entire genome was the most important story of the year (see polygenic scores on our 10 Breakthrough Technologies list). The new scores can handicap a person’s odds of breast cancer, of getting through college, or even of being tall enough for the NBA. In 2019, keep an eye on gene-test companies like 23andMe and Color Genomics to see if they launch such gene predictions commercially.

Genetic IQ tests: Genes don’t affect just what we look like, but who we are. Now some scientists say these same DNA scores can offer a decent guess at how smart a kid will be later in life. The unanswered question: how we should use this information, if at all?

Testing embryos: Yes, it’s probably going to be exactly like that sci-fi movie Gattaca, the one about a world where parents pick their kids from a petri dish. Already, IVF centers run gene tests and let parents pick embryos to avoid certain serious disease risks. Now Genomic Prediction, a New Jersey company we exclusively covered in 2017, says it’s ready to begin testing embryos to grade their future educational potential. So forget CRISPR babies—designer kids are already here.

Racial bias: Here’s something that’s not so great: about 80% of the DNA ever analyzed is from white people of European ancestry. It means some new discoveries and commercial tests only work in white people and don’t apply to Africans, Asians, Latinos, or others ancestry groups whose genetic patterns differ. There are good scientific reasons to expand the gene hunt, says Stanford University geneticist Carlos D. Bustamante. We may be missing health breakthroughs by looking too narrowly.

Mimicking clinical trials: Did you know you’re part of a gigantic, random experiment? It’s true. Or at least some geneticists see you that way. And now they’ve come up with a very clever trick called Mendelian randomization that uses people’s medical information to predict which new drugs will work for them and which won’t.

Crime fighters: The more DNA data is out there, the easier it is to find out who a drop of blood or a hair follicle belongs to. That’s what the Golden State Killer learned in April, when he was caught by sleuths employing an informal collection of DNA profiles and genealogical trees. In fact, the way the math works out, genetic anonymity is kaput—sine pretty much all of us have a relative in a DNA database already. One genetic genealogist, CeCe Moore, told us that she’s identified 27 murderers and rapists since April. A very good year.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Technology

These ten enterprise M&A deals totaled over $40B in 2019

It would be hard to top the 2018 enterprise M&A total of a whopping $87 billion, and predictably this year didn’t come close. In fact, the top 10 enterprise M&A deals in 2019 were less than half last year’s, totaling $40.6 billion. This year’s biggest purchase was Salesforce buying Tableau for $15.7 billion, which would…

Published

on

These ten enterprise M&A deals totaled over $40B in 2019

It would be hard to top the 2018 enterprise M&A total of a whopping $87 billion, and predictably this year didn’t come close. In fact, the top 10 enterprise M&A deals in 2019 were less than half last year’s, totaling $40.6 billion.

This year’s biggest purchase was Salesforce buying Tableau for $15.7 billion, which would have been good for third place last year behind IBM’s mega deal plucking Red Hat for $34 billion and Broadcom grabbing CA Technologies for $18.8 billion.

Contributing to this year’s quieter activity was the fact that several typically acquisitive companies — Adobe, Oracle and IBM — stayed mostly on the sidelines after big investments last year. It’s not unusual for companies to take a go-slow approach after a big expenditure year. Adobe and Oracle bought just two companies each with neither revealing the prices. IBM didn’t buy any.

Microsoft didn’t show up on this year’s list either, but still managed to pick up eight new companies. It was just that none was large enough to make the list (or even for them to publicly reveal the prices). When a publicly traded company doesn’t reveal the price, it usually means that it didn’t reach the threshold of being material to the company’s results.

As always, just because you buy it doesn’t mean it’s always going to integrate smoothly or well, and we won’t know about the success or failure of these transactions for some years to come. For now, we can only look at the deals themselves.

Continue Reading

Technology

Jumia, DHL, and Alibaba will face off in African ecommerce 2.0

The business of selling consumer goods and services online is a relatively young endeavor across Africa, but ecommerce is set to boom. Over the last eight years, the sector has seen its first phase of big VC fundings, startup duels and attrition. To date, scaling e-commerce in Africa has straddled the line of challenge and…

Published

on

Jumia, DHL, and Alibaba will face off in African ecommerce 2.0

The business of selling consumer goods and services online is a relatively young endeavor across Africa, but ecommerce is set to boom.

Over the last eight years, the sector has seen its first phase of big VC fundings, startup duels and attrition.

To date, scaling e-commerce in Africa has straddled the line of challenge and opportunity, perhaps more than any other market in the world. Across major African economies, many of the requisites for online retail — internet access, digital payment adoption, and 3PL delivery options — have been severely lacking.

Still, startups jumped into this market for the chance to digitize a share of Africa’s fast growing consumer spending, expected to top $2 billion by 2025.

African e-commerce 2.0 will include some old and new players, play out across more countries, place more priority on internet services, and see the entry of China.

But before highlighting several things to look out for in the future of digital-retail on the continent, a look back is beneficial.

Jumia vs. Konga

The early years for development of African online shopping largely played out in Nigeria (and to some extent South Africa). Anyone who visited Nigeria from 2012 to 2016 likely saw evidence of one of the continent’s early e-commerce showdowns. Nigeria had its own Coke vs. Pepsi-like duel — a race between ventures Konga and Jumia to out-advertise and out-discount each other in a quest to scale online shopping in Africa’s largest economy and most populous nation.

Traveling in Lagos traffic, large billboards for each startup faced off across the skyline, as their delivery motorcycles buzzed between stopped cars.

Covering each company early on, it appeared a battle of VC attrition. The challenge: who could continue to raise enough capital to absorb the losses of simultaneously capturing and creating an e-commerce market in notoriously difficult conditions.

In addition to the aforementioned challenges, Nigeria also had (and continues to have) shoddy electricity.

Both Konga — founded by Nigerian Sim Shagaya — and Jumia — originally founded by two Nigerians and two Frenchman — were forced to burn capital building fulfillment operations most e-commerce startups source to third parties.

That included their own delivery and payment services (KongaPay and JumiaPay). In addition to sales of goods from mobile-phones to diapers, both startups also began experimenting with verticals for internet based services, such as food-delivery and classifieds.

While Jumia and Konga were competing in Nigeria, there was another VC driven race for e-commerce playing out in South Africa — the continent’s second largest and most advanced economy.

E-tailers Takealot and Kalahari had been jockeying for market share since 2011 after raising capital in the hundreds of millions of dollars from investors Naspers and U.S. fund Tiger Global Management.

So how did things turn out in West and Southern Africa? In 2014, the lead investor of a flailing Kalahari — Naspers — facilitated a merger with Takealot (that was more of an acquisition). They nixed the Kalahari brand in 2016 and bought out Takelot’s largest investor, Tiger Global, in 2018. Takealot is now South Africa’s leading e-commerce site by market share, but only operates in one country.

In Nigeria, by 2016 Jumia had outpaced its rival Konga in Alexa ratings (6 vs 14), while out-raising Konga (with backing of Goldman Sachs) to become Africa’s first VC backed, startup unicorn. By early 2018, Konga was purchased in a distressed acquisition and faded away as a competitor to Jumia.

Jumia went on to expand online goods and services verticals into 14 Africa countries (though it recently exited a few) and in April 2019 raised over $200 million in an NYSE IPO — the first on a major exchange for a VC-backed startup operating in Africa.

Jumia’s had bumpy road since going public — losing significant share-value after a short-sell attack earlier in 2019 — but the continent’s leading e-commerce company still has heap of capital and generates $100 million in revenues (even with losses).

Continue Reading

Technology

Airbnb’s New Year’s Eve guest volume shows its falling growth rate

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between. It’s finally 2020, the year that should bring us a direct listing from home-sharing giant Airbnb, a technology company valued at tens of billions of dollars. The company’s flotation will be a key event in…

Published

on

Airbnb’s New Year’s Eve guest volume shows its falling growth rate

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

It’s finally 2020, the year that should bring us a direct listing from home-sharing giant Airbnb, a technology company valued at tens of billions of dollars. The company’s flotation will be a key event in this coming year’s technology exit market. Expect the NYSE and Nasdaq to compete for the listing, bankers to queue to take part, and endless media coverage.

Given that that’s ahead, we’re going to take periodic looks at Airbnb as we tick closer to its eventual public market debut. And that means that this morning we’re looking back through time to see how fast the company has grown by using a quirky data point.

Airbnb releases a regular tally of its expected “guest stays” for New Year’s Eve each year, including 2019. We can therefore look back in time, tracking how quickly (or not) Airbnb’s New Year Eve guest tally has risen. This exercise will provide a loose, but fun proxy for the company’s growth as a whole.

The numbers

Before we look into the figures themselves, keep in mind that we are looking at a guest figure which is at best a proxy for revenue. We don’t know the revenue mix of the guest stays, for example, meaning that Airbnb could have seen a 10% drop in per-guest revenue this New Year’s Eve — even with more guest stays — and we’d have no idea.

So, the cliche about grains of salt and taking, please.

But as more guests tends to mean more rentals which points towards more revenue, the New Year’s Eve figures are useful as we work to understand how quickly Airbnb is growing now compared to how fast it grew in the past. The faster the company is expanding today, the more it’s worth. And given recent news that the company has ditched profitability in favor of boosting its sales and marketing spend (leading to sharp, regular deficits in its quarterly results), how fast Airbnb can grow through higher spend is a key question for the highly-backed, San Francisco-based private company.

Here’s the tally of guest stays in Airbnb’s during New Years Eve (data via CNBC, Jon Erlichman, Airbnb), and their resulting year-over-year growth rates:

  • 2009: 1,400
  • 2010: 6,000 (+329%)
  • 2011: 3,1000 (+417%)
  • 2012: 108,000 (248%)
  • 2013: 250,000 (+131%)
  • 2014: 540,000 (+116%)
  • 2015: 1,100,000 (+104%)
  • 2016: 2,000,000 (+82%)
  • 2017: 3,000,000 (+50%)
  • 2018: 3,700,000 (+23%)
  • 2019: 4,500,000 (+22%)

In chart form, that looks like this:

Let’s talk about a few things that stand out. First is that the company’s growth rate managed to stay over 100% for as long as it did. In case you’re a SaaS fan, what Airbnb pulled off in its early years (again, using this fun proxy for revenue growth) was far better than a triple-triple-double-double-double.

Next, the company’s growth rate in percentage terms has slowed dramatically, including in 2019. At the same time the firm managed to re-accelerate its gross guest growth in 2019. In numerical terms, Airbnb added 1,000,000 New Year’s Eve guest stays in 2017, 700,000 in 2018, and 800,000 in 2019. So 2019’s gross adds was not a record, but it was a better result than its year-ago tally.

Continue Reading

Recent Posts