Episode Summary
Executive Summary: This podcast features two segments: first, a founder's guide on the critical importance of monthly investor updates for building credibility, securing follow-on funding, and avoiding failure; second, an interview with Ginkgo Bioworks CEO Jason Kelly, who explains how synthetic biology treats DNA as programmable code, enabling cell programming for products like cannabinoids and animal-free proteins. Kelly discusses Ginkgo's AWS-like platform, the 1 million-fold cost reduction in genome sequencing, biosecurity lessons from COVID-19, ethical boundaries (e.g., human gene editing), and the need for transparency to build public trust in GMOs.
Main Topics: Importance of Monthly Investor Updates (Priority: 5/5): Founders must send regular updates to investors to build credibility, signal progress, and enable timely help. Lack of updates correlates with failure and lost trust. Synthetic Biology as Programming (Priority: 5/5): DNA is digital code (A, T, C, G) that can be read, written, and debugged like software. Cells are programmable machines that can produce physical goods. Ginkgo's Business Model: AWS for Biology (Priority: 4/5): Ginkgo provides a platform (robotic automation, lab cloud) for cell programming, taking equity or royalties. Customers like Motif Foodworks outsource R&D entirely. Cost Reduction in Genomics (Priority: 4/5): Human genome sequencing cost dropped from ~$100M to ~$100, a 1 million-fold improvement, outpacing Moore's Law. Biosecurity and COVID-19 Lessons (Priority: 5/5): COVID-19 highlighted global vulnerability. Kelly advocates for robust biosecurity akin to cybersecurity, including surveillance and vaccine infrastructure to eliminate infectious disease. Ethics of Gene Editing and GMOs (Priority: 4/5): Human germline editing is decades away due to complexity and societal conservatism. GMO labeling should be transparent to build trust; synthetic biology can make sustainable products. Future of Physical Goods via Biology (Priority: 3/5): Biology will disrupt industries like food, materials, and electronics by moving atoms programmably, similar to how computing moved information.
Key Arguments: Monthly investor updates are essential for founders: they build credibility, enable investors to help, and signal progress. Lack of updates often means the company is failing. Synthetic biology treats DNA as digital code; cells can be programmed to produce valuable molecules (e.g., cannabinoids, heme for Impossible Burger) by reading and debugging genetic code. Ginkgo's platform (robotic automation, lab cloud) reduces cost and time for cell programming, analogous to AWS for computing. Customers like Motif Foodworks raised $226M with only 35 people and no lab. Genome sequencing costs have dropped 1 million-fold in 21 years, enabling cheap reading of DNA. However, understanding and predicting biology remains complex due to its alien-like sophistication. Biosecurity must be strengthened globally, especially after COVID-19. Kelly proposes a 'dome' of public health security to eliminate infectious disease and deter biological weapons. Human gene editing for enhancement is unlikely soon due to unpredictability and ethical concerns. GMO labeling should be transparent to build trust; synthetic biology can produce sustainable goods. Biology is 'alien technology' – it self-assembles with molecular precision. Breakthroughs like CRISPR come from nature, not human design, and can dramatically accelerate progress.
Data Points: Cost reduction in human genome sequencing: From ~$100 million to ~$100 - Over 21 years, a 1 million-fold improvement, outpacing Moore's Law. Ginkgo's annual output improvement: Tripling output each year, halving cost per lab operation annually - Over five years, 2^5 = 32x better than five years ago. Motif Foodworks funding and team size: $226 million raised, 35 employees, no lab - Built entirely on Ginkgo's platform, demonstrating the AWS-like model. Ginkgo's SPAC deal capital: $775 million PIPE + $1.75 billion in SPAC - Provides capital to scale synthetic biology platform. Cost of a human genome today: ~$100 - Illumina and BGI Genomics offer sequencing at this price. Number of genes needed for cannabinoid production: 6-7 genes - Example of a cell programming project for Kronos (cannabis company).
Pivotal Quotes: "The whole thing runs on digital code in the form of DNA... it's A, T, C's, and G's, not zeros and ones. But, like, holy crap, it's digital, right?" — Jason Kelly: Explaining the fundamental insight of synthetic biology: DNA is programmable code. "It's alien technology... we didn't design it. And so that's the core challenge of biological engineering. It's like a reverse engineering discipline." — Jason Kelly: Describing the complexity and power of biology compared to human-engineered systems. "We ought to just eliminate infectious disease worldwide... build the shield, build like perfect biosecurity. It's just going to look like the ability to eliminate infectious disease." — Jason Kelly: Advocating for a proactive biosecurity approach post-COVID-19. "It isn't an issue of safety, it's an issue of trust... one of the best ways to eliminate trust is to be like, 'oh, yeah, hey, I want to know, is this in my food?' ... 'No, I'm not going to tell you.'" — Jason Kelly: On GMO labeling and the importance of transparency to build public trust.
Implications: For founders: regular investor updates are non-negotiable for credibility and survival. For the synthetic biology industry: rapid cost declines and platform models (like Ginkgo) will transform manufacturing of food, materials, and medicines, but require robust biosecurity and transparent public engagement to avoid backlash and misuse.
About This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.