Russian billionaire invests in U.S. genetics company 23andMe

SAN FRANCISCO Tue Dec 11, 2012 7:20pm EST

Digital Sky Technologies CEO Yuri Milner attends the eG8 forum in Paris May 25, 2011. REUTERS/Gonzalo Fuentes

Digital Sky Technologies CEO Yuri Milner attends the eG8 forum in Paris May 25, 2011.

Credit: Reuters/Gonzalo Fuentes

SAN FRANCISCO (Reuters) - Russian billionaire Yuri Milner, best-known for investments linking consumers to the Internet, is placing a bet on genetics.

Milner, who backed companies ranging from Facebook Inc to gaming company Zynga Inc, has led a $50 million funding round into 23andMe, a Mountain View, California, company that helps people decipher their genetic makeup.

His investment could shine a spotlight on biotechnology startups, which have taken a backseat in visibility to sectors like cloud computing and Internet services targeted at consumers.

23andMe, named for the 23 pairs of chromosomes that make up each person's genome, also announced a price drop for its saliva-based test, to $99 from $299.

For that price, consumers learn specifics about ancestry and genetic traits, including the possible conditions and diseases to which they may have a genetic propensity.

Existing investors joining the funding round include Anne Wojcicki, 23andMe's chief executive; Sergey Brin, Wojcicki's husband and co-founder of Google Inc; New Enterprise Associates; Google Ventures; and MPM Capital.

The company's last funding round was about $31 million, raised two years ago. Since its founding in 2006, 23andMe has raised about $68 million.

Biotechnology has fostered some hefty investment exits recently. On Monday, Amgen Inc said it would pay $415 million for Iceland-based Decode Genetics.

(Editing by Matthew Lewis)

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