Bambu Ventures and Innova Acquire 23andMe's Lemonaid Health for $10M

Lemonaid Health, the telehealth division of bankrupt genetic testing company 23andMe, has found new ownership through a $10 million acquisition by Bambu Ventures in partnership with Innova Capital Partners. The sale marks a significant markdown from the $400 million that 23andMe paid for the digital health platform in 2021.

The acquisition follows 23andMe's filing for Chapter 11 bankruptcy protection in March, prompted by financial struggles and a major data breach that compromised customer information. The company's downfall necessitated the divestiture of its telehealth subsidiary, which offers digital mental health services, primary care, and dermatology consultations through its platform.

Initially, the TTAM Research Institute, a nonprofit medical research organization founded by 23andMe co-founder Anne Wojcicki, had agreed to acquire the bankrupt corporation including Lemonaid Health. The institute's July offer valued Lemonaid at $2.5 million "subject to higher and better offers," according to Securities and Exchange Commission filings. This baseline price set the stage for competitive bidding that ultimately doubled the initial valuation.

Bambu Ventures and Innova Capital Partners had been strategizing their acquisition approach for nearly four months before finalizing the deal. On September 10, the venture partners executed a stock purchase agreement to obtain 100% of Lemonaid Health's outstanding capital stock for $10 million in cash, including a $2.5 million good-faith deposit.

"We are excited to pair vision with operational excellence, bringing Lemonaid back to an aggressive growth mindset," Richard Hearn, general partner at Bambu Ventures, said in a statement.

The new ownership structure will bring immediate leadership changes to Lemonaid Health. Hearn and Kyle Pretsch, both general partners at Bambu Ventures, will assume executive leadership roles and oversee daily operations. Dylan Runne, Bambu's founder, will join Lemonaid's board of directors to provide strategic guidance.

Post-acquisition priorities focus on expanding Lemonaid's on-demand telehealth services and online pharmacy capabilities. The new leadership team plans to implement platform enhancements designed to make healthcare services both easier and faster to access for patients seeking digital health solutions.

The future relationship between 23andMe and Lemonaid Health remains uncertain. When asked about potential ongoing partnerships or service arrangements, a 23andMe spokesperson told BHB the company is "not providing comment on the transaction."

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