The growing interest in genetic genealogy has created a new market for genetic tests. The prediction is that in the next five to ten years the market will see yearly double digit growth. In 2017 the sector will be worth $2.2 billion.
Analysts see huge opportunities in growth for genetic testing, especially for those that consumers can do at home, without consulting specialists. The tests cost between $80-100 and have been introduced by Ancestry, Family Tree DNA, and 23andMe. Their services have found millions of customers internationally. The firms offer DNA testing of both paternal and material lineages to help people find out which parts of the world they are from, what their ethnic group make up is, and what the risks and benefits of a certain genetic type may be. They are also informed of any close relations that have also taken the test. Genetic test takers benefit from the enormous data pools created by these companies: Ancestry has information on 70 million genetic "trees" and 1.5 million DNA tests, which it has given in its 20 years of existence.
Ancestry is the biggest genetic testing company in the world, offering tests in the U.S. and nine other countries. Over 2 million people have registered for the service. Along with DNA testing it offers access to data that helps people find their ancestors, like census reports, and a digital genetic tree. The company was created in 1984 and in 2009 it went public on NASDAQ with 7.4 million shares at $13.5 per. It was listed under ACOM. In 2012, it was bought by a private equity group made up of Permira Advisors, CEO Tim Sullivan and CFO Howard Hochhauser as well as other members of the management team, and Spectrum Equity for $1.6 billion or $32 a share.
Family Tree DNA offers DNA testing through their Gene by Gene department, with headquarters in Houston. It was founded in 2000, when the founders were doing early gene testing at the University of Arizona. Then, they started working with the service African DNA, which helps connect African Americans with their African roots.
23andMe offers genetic testing and interactive tools to help you understand the information encoded in DNA. Established in 2006, ones of its founders is Anne Wojcicki, the sister of YouTube's Managing Director Susanne Wojcicki, and the wife of Google (NASDAQ: GOOGL) co-founder Sergey Brin. 23andMe also works with pharmaceutical companies helping conduct genetics research to help treat diseases such as breast cancer or Parkinson's. The company is private, using venture capital financing. Among investors are Google and Johnson & Johnson (NYSE: JNJ).