Gene Tech is Not Biotech

Many investors prefer discrete, scalable, capital-light, fast-to-scale software startups to biotech startups. It is a reasonable preference.

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Gene tech is a different kind of biotechnology

At a glance, genetic technology is a subset of biotechnology. But its digital nature sets it apart.

DNA is software. That's not just in the sense the living cells are squishy but also because DNA is digital code, like computer software.

Digital information can be copied and processed without degradation. The discovery of digitization is as influential on humanity as language and the wheel. In the 1950s, scientists first recognized that DNA is digital code. In the 2000s, we learned to read long sequences. In the 2010s, we honed tools to precisely edit DNA using CRISPR.

We distinguish software companies from electronics companies. We should also distinguish gene tech companies from conventional biotech.

Future gene tech startups will not share the same disadvantages as traditional biotech. Gene edits can be simulated on computers, reducing the need for expensive real-world testing and high failure rates. This will enable faster development of products. Startups can create products that are cost competitive from the start, unlike some biotech that requires government grants or subsidies.

While conventional biotech provides incremental improvements, gene tech will create entirely new markets and tremendous value. It is digital technology applied to biology.

Gene tech is a different class of investment

Due to wariness of biotech, many investors have also overlooked the revolutionary potential of gene tech startups. This has led to underfunding and undervaluation of gene tech companies with huge value creation and growth potential.

Now is an ideal time to invest. The low valuations allow large ownership stakes and diversification across various applications of gene tech.

In short, gene tech should be recognized as a different category from conventional biotech, with standout prospects for investors who see its similarities to software. Targeted investment in gene tech will produce outsized returns.

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