In a new and candid exposé, Abasi Ene-Obong, the founder of 54gene, a once-promising Nigerian healthtech startup, opens up about the personal, professional, and financial challenges he faced at the helm of the company. In a departure from his typically reserved public persona, Ene-Obong takes a reflective, yet pointed, look at the forces he believes conspired to bring down not just 54gene, but also him, as an African entrepreneur daring to break new ground in genomics.

54gene was founded in 2019 with a mission as ambitious as it was urgent — to address the significant underrepresentation of African genomic data in global pharmaceutical research. With less than 3% of genetic material used in research originating from Africa, the company aimed to rectify a glaring gap in drug discovery and development. Attracting significant attention from both investors and the global scientific community, the company quickly raised $45 million in funding over three rounds, backed by prominent venture capital firms such as Adjuvant Capital, Y Combinator, and Cathay AfricInvest Innovation.

But the success story was short-lived. By 2023, 54gene was unraveling. What began as an ambitious vision to reshape global drug discovery turned into a cautionary tale of ambition curtailed by external pressures and internal crises. In July of last year, the company began the process of winding down its operations. Its website went dark, and its public relations firm, which had managed the company’s communications since its early days, distanced itself from the beleaguered startup. In his new narrative, Ene-Obong traces this collapse not just to operational and financial difficulties but to what he sees as a broader pattern of sabotage and systemic inequities faced by African entrepreneurs.

The Collapse of 54gene: What Went Wrong?

At its peak, 54gene was heralded as a trailblazer in African healthtech. The company’s focus on genomic research specific to African populations promised to transform how global pharmaceutical companies approached drug discovery for diseases prevalent on the continent. Its partnerships with international research institutions, such as the Broad Institute of MIT and Harvard, highlighted its potential to be a major player in the multi-billion-dollar pharmaceutical industry.

However, behind the scenes, all was not well. Ene-Obong’s leadership was challenged by mounting financial pressures, coupled with a changing landscape in venture capital investment. Despite the company’s early success in securing funding, including a $25 million Series B round in September 2021, 54gene struggled to maintain its financial health. By mid-2022, reports of mass layoffs and internal restructuring began to surface, with more than 100 employees let go in a bid to cut costs and streamline operations.

By early 2023, Ene-Obong was replaced as CEO in what was viewed as a drastic move by the board to stabilize the floundering company. His successor, Ron Chiarello, took over in March but stepped down just four months later, leaving the company in an even deeper state of disarray. Internal strife, leadership changes, and a lack of clear financial direction hastened 54gene’s downfall. By July, the company had all but ceased operations.

In his exposé, Ene-Obong reflects on the collapse of the company with a mix of regret and defiance. He does not shy away from acknowledging the company’s financial difficulties but emphasizes that the challenges ran deeper than just cash flow problems. “I walked a very fine line, never doing anything unethical financially or otherwise,” he writes, highlighting that even at the height of the company’s struggles, he took personal financial hits to avoid laying off employees or compromising on 54gene’s mission.

A Story of Sabotage?

In his exposé, Ene-Obong draws a parallel between his experience at 54gene and the historical sabotage of African leaders who dared to challenge the status quo. He recounts the story of King Jaja of Opobo, a Nigerian monarch who in the 19th century was exiled by British colonists for controlling trade routes that were vital to their economic interests. Like Jaja, Ene-Obong suggests that his downfall was not simply a result of internal mismanagement but of external pressures and vested interests working against the company’s success.

He points to several instances in African business history where transformative projects were derailed by foreign interests or local actors manipulated by outside forces. “There is a pattern,” he writes. “Transformational projects get sabotaged, the reputations of the people who led them get attacked, and that transformation stalls to the detriment of the African people.”

Ene-Obong asserts that 54gene was no exception to this pattern. He claims that from the outset, his company faced undue scrutiny, and he believes there were efforts to undermine the startup’s credibility. At the height of the company’s troubles, allegations of financial mismanagement surfaced in various media outlets, with TechCrunch being one of the first to publish claims that Ene-Obong had resigned amidst accusations of financial impropriety. Although the publication later retracted the story and issued an apology after failing to find evidence to support the claims, the damage was already done. “It’s not if they’ll come for you; it’s when they’ll come for you,” an investor had once told him, and according to him, those words now seemed prophetic.

To Ene-Obong, these attacks were part of a larger narrative that black entrepreneurs, especially those daring to innovate on a global scale, must work two to ten times harder than their counterparts to achieve the same level of recognition and success. The constant struggle for legitimacy in the eyes of investors, partners, and even employees was compounded by what he perceives as a lack of forgiveness afforded to black founders when things go wrong.

The Future of African Healthtech

The collapse of 54gene casts a shadow over the broader African healthtech landscape, which has seen a surge in investment and innovation in recent years. The company was once viewed as a vanguard in Africa’s effort to contribute to global healthcare solutions. Its fall raises questions about the sustainability of African-led startups that seek to play on the world stage while battling both internal and external challenges.

For Ene-Obong, the lesson from the 54gene saga is not just one of caution but of resilience. He urges African entrepreneurs not to be deterred by setbacks or by the forces that may seek to undermine their efforts. “You are not alone,” he writes in his closing remarks, addressing those who may find themselves in similar circumstances. His journey, while fraught with difficulties, is far from over, and he remains hopeful that Africa’s contribution to global science and innovation will continue to grow.

While 54gene’s story has come to a close, its founder’s exposé is a reminder that the battle for African agency in global markets is ongoing. “This journey will have mountains and streams, but there’s also a rainbow. Don’t give up before your dream is revealed,” Ene-Obong advises, reflecting on the lessons learned from his own trials. For him, the collapse of 54gene is not the end, but part of a much larger narrative about the future of African entrepreneurship.