Veracyte

Veracyte is a genomic diagnostics company in South San Francisco, California. Its tests analyze gene expression in patient samples to help physicians diagnose cancer and decide on treatment. It was incorporated in Delaware as Calderome, Inc. on August 15, 2006, ran as an incubator until early 2008, and took the Veracyte name on March 4, 2008. Bonnie H. Anderson became chief executive in February 2008. Its first product, the Afirma Thyroid FNA Analysis, launched in January 2011. Afirma uses a 142-gene classifier to show whether a thyroid nodule with indeterminate cytology is benign, so that patients can avoid unnecessary surgery.

Before going public, Veracyte raised $78.6 million in net proceeds from preferred stock, according to its IPO prospectus, and also received a $10 million payment under a co-promotion agreement with Genzyme, a Sanofi subsidiary. A tranched Series B agreement was signed in June 2010 and a tranched Series C in November 2012. Purchases by insiders across those two rounds totaled $51.9 million: Domain Partners $17.2 million, Versant Ventures $11.1 million, TPG Biotechnology Partners II $11.0 million, KPCB (Kleiner Perkins) $11.0 million and jVen Capital $1.5 million. Before the offering, Versant, Kleiner Perkins, TPG and Domain each held between 19% and 23% of the company.

Veracyte priced its IPO on Nasdaq under the ticker VCYT at $13.00 per share. It sold 5,000,000 shares for $65 million in gross proceeds, and the final prospectus was filed on October 30, 2013. Revenue had risen from $2.6 million in 2011 to $17.1 million for the twelve months ending June 30, 2013. The company later grew through acquisitions. In February 2021 it agreed to buy Decipher Biosciences, a urologic cancer testing company, for $600 million ($250 million in cash and up to $350 million in stock). Its later filings also cover the HalioDx and C2i Genomics businesses and the nCounter platform. Total revenue was $361.1 million in 2023, $445.8 million in 2024 and $517.1 million in 2025.

Veracyte shows what venture-backed diagnostics looks like over a long hold. Kleiner Perkins and TPG had board seats from January 2007, and their insiders' preferred stock converted at the October 2013 IPO, about seven years after incorporation. The company then used public equity to buy other venture-backed diagnostics businesses, including Decipher, which is one way that investors in a private company can be paid out by a public acquirer.