Google Invests $2.6 Million In Genetics Company
Story from the Wall Street Journal

SAN FRANCISCO -- Google Inc. said Thursday that it has invested an additional $2.6 million in 23andMe Inc., a biotech startup launched by Google co-founder Sergey Brin's wife.

Google's initial $3.9 million investment in the personal genetics company sparked controversy in May 2007 for the manner in which it blurred the line between personal and corporate property.

Mr. Brin disclosed last year that he has a gene that increases his likelihood of developing Parkinson's disease -- a mutation he found out about through DNA analysis by 23andMe.

The biotech group, which helps consumers make sense of their genetic information, was co-founded by Anne Wojcicki, whom Mr. Brin married about two years ago.

Google said its investment in 23andMe was consistent with the Internet search company's goal of organizing the world's information. "We believed 23andMe's technology had promise the first time we invested and we continue to believe that now," said Google spokeswoman Jane Penner.

Google said in a filing with the Securities and Exchange Commission that it continues to hold a minority interest in 23andMe as a result of its latest investment. Other investors included venture capital firm New Enterprise Associates.

Google said Mr. Brin holds about 38% of Google's Class B common stock, and prior to Google's investment in 23andMe, he invested $10 million in 23andMe's convertible debt financing, which was converted into Series B preferred stock as part of this financing transaction.

The funds from Google's first investment in the biotech group were used in part to repay a loan of approximately $2.6 million that Brin had earlier provided to 23andMe. Google in late 2007 bought additional shares of 23andMe held by an investor for about $500,000.

Google also said Thursday that it has entered into a lease agreement with 23andMe -- but provided no further details -- other than the lease was reviewed by an independent real estate appraiser.

Google shares closed Thursday at $414.06, down $1.10.