Microbiome startup Viome secures $86.5M funding and teams up with CVS for distribution
The study of the human microbiome, which refers to the microorganisms that live in various parts of the body, has provided valuable insights and stimulated further investigations into what constitutes a healthy individual. This has fueled the interest in alternative medicine and attracted venture funding for startups working in this field. One of these prominent startups is Viome, which has developed a business centered around analyzing customers’ microbiomes, employing AI to interpret the data, and providing customers with tailored supplements and advice based on the results. Recently, Viome raised $86.5 million in a Series C funding round, co-led by Khosla Ventures and Bold Capital, with participation from other current and new investors. The company claims that its RNA sequencing technology, developed initially from research conducted at the Los Alamos National Laboratory, is clinically validated, fully automated, and exclusively licensed by Viome to analyze biological samples at least 1,000 times better than other technologies.
Established in 2016, the Bellevue-based company has conducted tests for approximately 350,000 consumers from 106 countries, mainly from the U.S., U.K., Canada, and Australia. These tests have produced roughly 600,000 samples that help inform and improve the company’s algorithm.
The company plans to utilize the equity funding for expanding its current business, which includes tests based on samples of a person’s blood, stools, and saliva, as well as vitamin supplements and diet assessments. Additionally, they plan to venture into new areas, such as developing new product lines for mouth and dental health and establishing retail partnerships. One such collaboration is with CVS, which will offer Viome tests in approximately 200 stores across the United States.
During an interview, Viome’s CEO and founder Naveen Jain confirmed that CVS would purchase kits for a more comprehensive revenue share agreement. However, he clarified that the deal would not involve CVS investing in Viome. Jain explained that CVS is interested in selling the product in their stores as more people become aware of gut health’s importance. Meanwhile, while discussing the matter, Jain consumed some of his custom-designed capsules, consisting of a blend of pre-and probiotics and vitamins.
Viome has not disclosed its current valuation, but it has raised $175 million. According to PitchBook, the company was valued at $339 million in 2022, following a new funding round that brought in $67 million. Viome’s CEO, Naveen Jain, confirmed that the valuation has remained the same but has yet to provide an updated figure. Notable investors in the company include Better Health Group, SquareOne Capital, and Marc Benioff.
At this pivotal moment in the intersection of healthcare, technology, biotech, and shifting consumer attitudes, companies like Viome are experiencing growth and raising funds to support their expansion plans.
With the rising cost of standard medical services that cover an ever-expanding range of conditions, many people are turning to complementary or alternative remedies. However, this pursuit is only sometimes safe or effective, as seen during the COVID-19 pandemic with the spread of fake news and bogus remedies. Viome, on the other hand, presents itself as a startup that leverages technology to provide personalized vitamin supplements and guidance based on an individual’s unique microbiome and further physical details. While it may seem like alternative medicine, its approach is grounded in technological advancements.
One of the notable aspects of this approach is that it draws on insights generated by Los Alamos and focuses on RNA gene expression. This enables the team to offer personalized recommendations that are effective, dynamic, and tailored to the individual’s current state of health. The use of AI is another key component of this approach.
“According to a spokesperson for Viome, the company has been using AI and machine learning technologies since its inception. Viome claims to have the world’s largest database of RNA sequencing data from more than 600,000 samples, along with clinical metadata, giving them over 52 petabytes of data. Utilizing modern AI, machine learning, and bioinformatics methods, Viome analyzes this data to identify what is important for human health, creating personalized nutritional recommendations for each customer. With more than 35 predictive models of chronic diseases and FDA breakthrough device designation for detecting early-stage cancer in the mouth and throat, Viome has made significant strides in the field. However, not all companies in the microbiome research space have been successful. The government indicted one such company, uBiome, for fraud and other illegal practices. While there are many startups in this field, scientists are still determining if microbiome research can be so easily translated into conclusions and treatments, as companies like Viome claim.
In an interview, Dr. Jonathan Eisen, a professor at the University of California, Davis, and an expert in medical microbiology and genomics, expressed his concerns about Viome’s claims. He believes that their statements are misleading and do not accurately represent the science in the field or even their research.
Eisen had referred to the corporation as the “Theranos of Microbiome Studies” and had delved deeper over time. However, he has not been posting much about “overselling the microbiome” lately because he has been working on COVID-related matters. Eisen revealed that Viome is the most misleading group/company/entity he has seen recently, bombarding him with ads that are all misleading, scientifically inaccurate, and terrible. He is beginning to address microbiome communication issues again now that he has more time.
When I brought Eisen to Jain, Jain claimed that the professor worked for a competitor. However, Eisen refuted this claim, stating that he had never been paid to make any comments. While he had previously served on uBiome’s Scientific Advisory Board, he resigned in 2016 due to concerns about the company’s marketing practices. Eisen acknowledged Viome’s impressive diagnostic capabilities but noted that they lacked the necessary evidence to develop treatments for various conditions based on microbiome data.