Zymergen

Zymergen was founded in 2013.{{Cite web|title=With $44 Million In Funding, Biotech Startup Zymergen Is Buying Up Robots To Mass Produce Materials From Microbes|url=https://techcrunch.com/2015/06/16/with-44-million-in-funding-biotech-startup-zymergen-is-buying-up-robots-to-mass-produce-materials-from-microbes/ |first=Sarah |last=Buhr |date=2015-06-16|website=TechCrunch|language=en-US |archive-url=https://web.archive.org/web/20150616154059/https://techcrunch.com/2015/06/16/with-44-million-in-funding-biotech-startup-zymergen-is-buying-up-robots-to-mass-produce-materials-from-microbes/ |archive-date=2015-06-16 |url-status=live}} by investment banker Joshua Hoffman, biophysicist Zach Serber, and biochemist Jed Dean.{{Cite book |last1=Leitão |first1=Dantas, José Guilherme |url=https://books.google.com/books?id=OlLUDwAAQBAJ&dq=zymergen&pg=PA42 |title=Handbook of Research on Approaches to Alternative Entrepreneurship Opportunities |last2=Cagica |first2=Carvalho, Luísa |date=2020-02-25 |publisher=IGI Global |isbn=978-1-7998-1983-7 |pages=42 |language=en}} All three met while working at Amyris, Inc. The company uses machine learning and artificial intelligence to study and modify microbes which ferment carbon to produce chemicals used in manufacturing consumer goods and pharmaceuticals.{{Cite web|title=A new breed of scientist, with brains of silicon|url=https://www.science.org/content/article/new-breed-scientist-brains-silicon|access-date=2022-01-11|website=www.science.org|language=en}} Part of its research was into the production of alternatives to petroleum products.{{Cite book |last1=Medicine |first1=National Academies of Sciences, Engineering, and |url=https://books.google.com/books?id=IUShDwAAQBAJ&dq=zymergen&pg=PA14 |title=Fostering the Culture of Convergence in Research: Proceedings of a Workshop |last2=Studies |first2=Division on Earth and Life |date=2019-07-07 |publisher=National Academies Press |isbn=978-0-309-48495-4 |pages=14 |language=en}} The company claimed that it would be able to biologically produce materials more safely and at a lower cost than traditionally manufactured petroleum products, but was unable to demonstrate the performance of its materials.

The company raised $2 million in 2013, $44 million in 2015,{{Cite web|title=What You Need to Know About Zymergen |first=Mark |last=Terry |date=2015-12-02 |url=https://www.biospace.com/article/what-you-need-to-know-about-zymergen-/|website=BioSpace|language=en-US |archive-url=https://web.archive.org/web/20190501112033/https://www.biospace.com/article/what-you-need-to-know-about-zymergen-/ |archive-date=2019-05-01 |url-status=live}} $130 million from SoftBank's Vision Fund in 2016,{{Cite web|title=Biotech startup Zymergen nabs $130 million from Softbank|url=https://techcrunch.com/2016/10/10/biotech-startup-zymergen-nabs-130-million-from-softbank/ |first=Sarah |last=Buhr |date=2016-10-10|website=TechCrunch|language=en-US |archive-url=https://web.archive.org/web/20161011120548/https://techcrunch.com/2016/10/10/biotech-startup-zymergen-nabs-130-million-from-softbank/ |archive-date=2016-10-11 |url-status=live}} $400 million in 2018,{{Cite web|date=December 14, 2018|title=How Bio Startup Zymergen Plans to Spend $400M|url=https://www.bloomberg.com/news/videos/2018-12-14/how-bio-startup-zymergen-plans-to-spend-400m-video|access-date=2022-01-11|website=www.bloomberg.com}}{{Cite web|title=Zymergen lands $400 million more, led by SoftBank Vision Fund, for its genetically altered microbes|url=https://techcrunch.com/2018/12/13/zymergen-lands-400-million-more-for-its-genetically-altered-microbes-led-by-softbank-vision-fund/ |first=Connie |last=Loizos |date=2018-12-13|website=TechCrunch|language=en-US |archive-url=https://web.archive.org/web/20181213151945/https://techcrunch.com/2018/12/13/zymergen-lands-400-million-more-for-its-genetically-altered-microbes-led-by-softbank-vision-fund/ |archive-date=2018-12-13 |url-status=live}} and $300 million in 2020.{{Cite web|title=Zymergen raised $300 million because synthetic biology is so hot right now|url=https://techcrunch.com/2020/09/09/zymergen-raised-300-million-because-synthetic-biology-is-so-hot-right-now/ |first=Jonathan |last=Schieber |date=2020-09-09 |website=TechCrunch|language=en-US |archive-url=https://web.archive.org/web/20200909123855/https://techcrunch.com/2020/09/09/zymergen-raised-300-million-because-synthetic-biology-is-so-hot-right-now/ |archive-date=2020-09-09 |url-status=live}} The company reportedly included DARPA and Fortune 500 companies among its customers by 2016.{{Cite web |last=Konrad|first=Alex|title=Why SoftBank Just Led A $130 Million Mega Round Into Zymergen's Microbe-Creating Robots|url=https://www.forbes.com/sites/alexkonrad/2016/10/11/softbank-leads-130-million-series-b-for-zymergen-robots/|date=2016-10-11|website=Forbes|language=en |archive-url=https://web.archive.org/web/20161012155745/https://www.forbes.com/sites/alexkonrad/2016/10/11/softbank-leads-130-million-series-b-for-zymergen-robots/#21bd213864c1 |archive-date=2016-10-12 |url-status=live}} In 2018, Zymergen acquired fellow biotechnology firm Radiant Genomics.{{Cite web|date=2018-01-08|title=Zymergen Acquires Radiant Genomics|url=https://www.genomeweb.com/informatics/zymergen-acquires-radiant-genomics |website=Genomeweb|language=en |archive-url=https://web.archive.org/web/20190514153121/https://www.genomeweb.com/informatics/zymergen-acquires-radiant-genomics#.XNrfUPjLdD8 |archive-date=2019-05-14 |url-status=live}} According to an insider source reported by Forbes, the company was failing to generate revenue by this point but continued to attract investment. By April 2020, the company had begun to lay off between 10% and 15% of its employees.

The company released its first product, Hyaline, in December 2020.{{Cite web|last=Hytha|first=Michael|date=April 22, 2021|title='Biofacturing' Firm Zymergen Raises $500 Million in Expanded IPO|url=https://www.bloomberg.com/news/articles/2021-04-22/-biofacturing-firm-zymergen-raises-500-million-in-expanded-ipo|access-date=2022-01-10|website=www.bloomberg.com}} Hyaline is a bio-manufactured polyimide film made from diamine monomers. The material was transparent and flexible,{{Cite journal |last=Voigt |first=Christopher A. |date=2020-12-11 |title=Synthetic biology 2020–2030: six commercially-available products that are changing our world |url=https://www.nature.com/articles/s41467-020-20122-2 |journal=Nature Communications |language=en |volume=11 |issue=1 |pages=6379 |doi=10.1038/s41467-020-20122-2 |issn=2041-1723|doi-access=free |hdl=1721.1/133601.2 |hdl-access=free }} and was marketed for use with consumer electronics such as flexible smartphones and tablets.{{Cite web|last=Feldman|first=Amy|title=In An Earth Day Test For Synthetic Biology Field, Zymergen Raises $500 Million In IPO|url=https://www.forbes.com/sites/amyfeldman/2021/04/22/in-an-earth-day-test-for-synthetic-biology-field-zymergen-raises-500-million-in-ipo/|access-date=2022-01-10|website=Forbes|language=en}} In April 2021, the company went public with a $500 million IPO. The IPO was led by JPMorgan Chase and Goldman Sachs.

Regulatory filings with the U.S. Securities and Exchange Commission in July revealed that the company had made only $13 million in revenue during 2020, and had lost over $262 million.{{Cite web|last=Renauer|first=Cory|date=2021-04-27|title=This Is Why Zymergen's IPO Was a Huge Success|url=https://www.fool.com/investing/2021/04/27/this-is-why-zymergens-ipo-was-a-huge-success/|access-date=2022-01-10|website=The Motley Fool|language=en}} The filings also revealed that the company was struggling to produce Hyaline, and that two of its companies had complained that it did not work with their manufacturing process.{{Cite web |last=Levy |first=Ari |date=2021-08-04 |title=Synthetic biology company Zymergen plunges 68% after saying product revenue will be 'immaterial' in 2022, removing CEO |url=https://www.cnbc.com/2021/08/03/zymergen-zy-plunges-68percent-on-forecast-for-immaterial-revenue-in-2022.html |access-date=2023-08-22 |website=CNBC |language=en}} When these operational problems became public it resulted in a sharp reduction in market capitalization and shareholder lawsuits were filed shortly after.{{Cite web|last1=Feldman|first1=Amy |last2=Au-Yeung |first2=Angel |title=The Inside Story Of How SoftBank-Backed Zymergen Imploded Four Months After Its $3 Billion IPO|url=https://www.forbes.com/sites/amyfeldman/2021/10/13/the-inside-story-of-how-softbank-backed-zymergen-imploded-four-months-after-its-3-billion-ipo/|date=2021-10-13|website=Forbes|language=en |archive-url=https://web.archive.org/web/20211013105712/https://www.forbes.com/sites/amyfeldman/2021/10/13/the-inside-story-of-how-softbank-backed-zymergen-imploded-four-months-after-its-3-billion-ipo/ |archive-date=2021-10-13 |url-status=live}}

In August 2021, the company revealed that Hyaline was not successful with customers, its foldable screen did not have as large of a market as anticipated, and it did not have any sources of revenue that year.{{Cite web |title=CEO exits as fast-growing, newly public East Bay synthetic biology company's first product flops |url=https://www.bizjournals.com/sanfrancisco/news/2021/08/04/zymergen-ceo-synthetic-bio-ipo-zy-biomed-realty.html |access-date=2023-08-22 |website=San Francisco Business Times}}{{Cite news |date=2021-08-04 |title=SoftBank-Backed Zymergen Craters by Record After CEO Leaves |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2021-08-04/softbank-backed-zymergen-craters-to-record-low-after-ceo-leaves |access-date=2023-08-22}} This disclosure and Hoffman's resignation as CEO that month caused Zymergen's stock to plunge.{{Cite web|last=Beltran|first=Luisa|title=Shares of Synthetic Biology Hopeful Zymergen Plunge as CEO Departs|url=https://www.barrons.com/articles/shares-of-synthetic-biology-hopeful-zymergen-plunge-as-ceo-departs-51628032927|access-date=2022-01-10|website=www.barrons.com|language=en-US}} He was replaced by acting CEO Jay Flatley, who is also currently Zymergen's chairman and Illumina, Inc.'s former CEO. After Zymergen's stock prices crashed, investor Cathie Wood began buying up its shares, which raised prices again.{{Cite web|last=Flanagan|first=Cristin|date=August 5, 2021|title=Zymergen Can Thank Cathie Wood for Its Head-Spinning Rebound|url=https://www.bloomberg.com/news/articles/2021-08-05/zymergen-can-thank-cathie-wood-for-its-head-spinning-turnaround|access-date=2022-01-10|website=www.bloomberg.com}}

In the wake of these financial issues, the company began restructuring to cut costs, including renegotiating loans, laying off hundreds of employees, and restructuring lease expenses for office space. The company's founder Jed Dean also left the company.{{Cite web|title=Synthetic biology company Zymergen to cut 120 jobs after 1st product falters|url=https://www.bizjournals.com/sanfrancisco/news/2021/09/23/zymergen-job-cuts-synthetic-biology-hyaline.html|access-date=2022-01-10|website=www.bizjournals.com}}{{Cite web|title=Troubled Zymergen renegotiates loan, cuts 100 more jobs and loses co-founder|url=https://www.bizjournals.com/sanfrancisco/news/2021/10/21/zymergen-zy-jed-dean-perceptive-advisors-synbio.html|access-date=2022-01-10|website=www.bizjournals.com}} In November 2021, Zymergen announced that it had abandoned the production of Hyaline, and would be focusing on drug and vaccine development.{{Cite web|title=Zymergen ditches products, targets agriculture, vaccines, drugs as cost-cutting continues|url=https://www.bizjournals.com/sanfrancisco/news/2021/11/03/zymergen-zy-cuts-smart-phone-thin-film-vaccines-ag.html|access-date=2022-01-10|website=www.bizjournals.com}} The company's highly publicized difficulties in bringing its projected products to market and financial issues drew comparisons to other biotechnology companies such as Theranos.{{Cite web|last=Leuty|first=Ron|date=September 30, 2021|title=The rise and fall of Zymergen: Can biotech veteran Jay Flatley save the company?|url=https://www.bizjournals.com/sanfrancisco/news/2021/09/30/zymergen-jay-flatley-hyaline.html|access-date=2022-01-10|website=www.bizjournals.com}}

In July 2022, Ginkgo Bioworks agreed to acquire Zymergen for $300 million in an all-stock deal.{{cite web |url=https://www.forbes.com/sites/dereksaul/2022/07/25/ginkgo-buys-embattled-biotech-firm-zymergen-for-paltry-300-million |title=Ginkgo Buys Embattled Biotech Firm Zymergen For Paltry $300 Million |date=25 July 2022 |work=Forbes |first=Derek |last=Saul |archive-url=https://web.archive.org/web/20220726043405/https://www.forbes.com/sites/dereksaul/2022/07/25/ginkgo-buys-embattled-biotech-firm-zymergen-for-paltry-300-million/ |archive-date=26 July 2022 |url-status=live}}

On October 3, 2023, Zymergen filed for Chapter 11 bankruptcy.{{Cite web|url=https://news.bloomberglaw.com/bankruptcy-law/ginkgo-bioworks-unit-zymergen-filed-for-chapter-11-bankruptcy|title=Ginkgo Bioworks Unit Zymergen Filed for Chapter 11 Bankruptcy|date=October 3, 2023|access-date=October 3, 2023|website=Bloomberg|language=en}} On February 5, 2024, Zymergen announced that it would liquidate after selling all of its remaining assets and employee layoffs.{{Cite web|url=https://news.bloomberglaw.com/bankruptcy-law/ginkgo-bioworks-unit-zymergen-to-liquidate-after-selling-assets|title=Ginkgo Bioworks Unit Zymergen to Liquidate After Selling Assets|date=February 5, 2024|access-date=March 17, 2024|website=Bloomberg Law|language=en}}

{{Reflist}}

• {{Official website|https://www.zymergen.com/}}

Category:2013 establishments in California

Category:2022 mergers and acquisitions

Category:American companies established in 2013

Category:American companies disestablished in 2024

Category:Biotechnology companies of the United States

Category:Companies that filed for Chapter 11 bankruptcy in 2023

Category:Companies based in California

Category:Companies formerly listed on the Nasdaq