---
title: "Why 54gene shut down"
description: "54gene, a Nigerian genomics/health-tech startup that had raised $45M across three rounds, shut down in September 2023 after months of leadership turmoil, unpaid creditors and failed fundraising, following aggressive spending on diagnostics expansion (Seven River Labs) that did not pay off."
canonical_url: "https://liners.com/graveyard/54gene"
markdown_url: "https://liners.com/graveyard/54gene.md"
type: "graveyard"
language: "en"
image: "/graveyard/54gene/certificate.png"
published_at: "2026-07-31T17:41:07.836Z"
updated_at: "2026-07-31T17:41:07.836Z"
---

# Why 54gene shut down

54gene, a Nigerian genomics/health-tech startup that had raised $45M across three rounds, shut down in September 2023 after months of leadership turmoil, unpaid creditors and failed fundraising, following aggressive spending on diagnostics expansion (Seven River Labs) that did not pay off.

## Breadcrumbs

- [Graveyard](/graveyard)
- [54gene](/graveyard/54gene)

## Summary

Here lies 54gene. It set out to build the world's largest library of African DNA and briefly thrived on COVID testing. When that revenue faded, a costly diagnostics expansion drained the cash faster than three CEOs could refill it. The biobank outlived the company.

54gene, a Nigerian genomics/health-tech startup that had raised $45M across three rounds, shut down in September 2023 after months of leadership turmoil, unpaid creditors and failed fundraising, following aggressive spending on diagnostics expansion (Seven River Labs) that did not pay off.

## Product history

| Field | Value |
| --- | --- |
| Fate | ShutDown |
| Primary cause | FundingRunway |
| Stage at shutdown | Series B |
| Lifespan in days | 1704 |

## Autopsy report

## What the product attempted

Build a large database of African DNA/genomics research and diagnostics company, later expanding into COVID-19 testing and a diagnostics network (Seven River Labs).

## What worked

Raised $45M across three funding rounds and generated roughly $20M in revenue from COVID-19 testing at its peak.

## Early warning signs

Leadership pay cuts (from $330,000 to $175,999), roughly 30% layoffs by mid-2022, CEO resignation in October 2022, three CEO changes within one year, and mounting unpaid creditors and legal disputes.

## What happened

After COVID-testing revenue declined, 54gene's capital-intensive genomics operations and aggressive Seven River Labs diagnostics expansion drained cash; the company cut salaries and laid off about 30% of staff in 2022, co-founder and CEO Abasi Ene-Obong resigned in October 2022, and after further leadership changes and failed fundraising attempts the company began winding down in July 2023, ceasing operations by September 2023 and seeking buyers for its biobank assets.

## Sources

- [The Impact of 54gene's Closure on African Healthcare](https://startupgraveyard.africa/blog/the-impact-of-54genes-closure-on-african-healthcare): TechCabal
- [Abasi Ene-Obong Hints At Sabotage & False Allegations In 54gene Demise](https://weetracker.com/2024/10/18/founder-speaks-on-54gene-collapse/): WeeTracker
- [54gene CEO steps down as the company looks to cut more jobs](https://techcrunch.com/2022/10/24/54gene-ceo-steps-down-as-the-company-looks-to-cut-more-jobs): TechCrunch

## Related pages

- [54gene alternatives](/54gene/alternatives)
- [Liners Graveyard](/graveyard)

## Access and citation

- [Canonical HTML page](https://liners.com/graveyard/54gene)
- [Markdown route index](/sitemap.md)
- [Agent access guide](/llms.txt)