Element Bio raises $277 million in Series D

SAN DIEGO – Element Biosciences, an emerging competitor to Illumina, has raised $277 million in a Series D investment, valuing it at $1 billion.

The round was led by Wellington Management Private Investment, with participation from Samsung Electronics, Venrock, T.Rowe Price, Fidelity and others.

The funding will help the company commercialize its benchtop genomic analyzer Aviti and launch its next-generation Aviti24 system, which includes cell profiling and multi-omics.

With this new round of capital, total financing to date amounts to 680 million US dollars.
“The key to raising money is delivering on your promises,” said Molly He, co-founder and CEO of Element Biosciences. “To deliver on our promises, we have innovated, lowered the risk premium and listened to our customers.”

“Ultimately, we were able to raise these funds because we are meeting a need in the market and opening up entirely new avenues for scientific discovery. Our vision and our capabilities appeal to our customers and the market,” He said.

Democratization of sequencing

The private company, founded seven years ago, has set itself the task of “democratizing” sequencing.
Sequencing helps researchers diagnose and treat rare genetic diseases, fight cancer, and understand the incredibly complex community of bacteria that lives in our gut.

Element’s technology acts as a DNA sequencing platform that delivers high-quality data and flexible workflows, enabling researchers to conduct their research more efficiently.
In April this year, the company launched its new Aviti24 sequencer, which can perform simultaneous multi-omics analyses.

The company expects to at least double sales of its product line, which includes biological analysis kits and proprietary machines that cost about $289,000.

Element’s Aviti machines can be found in the fields of science, biotechnology, cancer research and agriculture.

“Since our inception, we have focused on bringing innovative biological tools to market, with our first technology being genetic analysis, or better known as sequencing,” said Mike Previte, co-founder and chief technology officer.

“We have developed a groundbreaking sequencing technology that offers the highest quality and affordability. We have set new standards with our sequencing offering, both in terms of the price of $200 for genome sequencing on a desktop and the Q50+ data quality.”

Tough competition

Initially operating out of rented space in the basement of General Atomics, the company now employs more than 300 people and has been able to recruit some of the best talent in the life sciences industry in San Diego, according to He.

“Element’s team is made up of trained scientists who love challenges and new adventures,” said He. “The concept of innovation was a natural fit for our founding team.”

“Don’t get me wrong. Our dynamic and determined product development team had to do a lot of hard work and pull long nights to reinvent every element of DNA sequencing. But the ability to sequence DNA faster, more cost-effectively and with higher accuracy than ever before is what excited us so much,” He said.

Element still has a long way to go to replace the nearly 25,000 DNA sequencers that Illumina has in use worldwide and currently has a market share of around 75 percent.

If Element continues to be successful, it will have access to a large and growing market.

looking ahead

Element was co-founded by Molly He, Michael Previte, and Matthew Kellinger. The trio secured $5 million in seed funding before they had any data or a prototype.

Prior to Element, he worked as a venture capitalist at Foresite and had 20 years of experience in genetic processing, including a senior role at Illumina. Mike Previte, the company’s CTO, and Matthew Kellinger, vice president of biochemistry, also previously worked at Illumina.

In 2022, the company moved into a five-story building at the Alexandria Tech Center in Sorrento Mesa. Element’s San Diego operations include research and development, manufacturing, and support activities.

“The San Diego community can expect many more industry-leading announcements from Element Biosciences,” said He. “The new funding will advance the commercialization of our AVITI and AVITI24 sequencers and support our innovative product roadmap.”

Element Biosciences
FOUNDED: 2017
Managing Director: Molly He
Headquarters: Sorrento Valley
Employees: 300+
Business: Developer of genetic analysis tools.
Website: www.elementbiosciences.com
Notably, the company started with $5 million in seed funding before it had any data or a prototype.