Court halts 54gene's asset sale, founder alleges investors caused company's downfall
In the heart of Africa's burgeoning tech ecosystem, a high-profile legal dispute is unfolding between the founder of biotech startup 54gene, Dr. Abasi Ene-Obong, and major investors including Cathay AfricInvest Innovation Fund and Adjuvant Capital. The dispute, which began in July 2025, centres around allegations of investor manipulation and improper dissolution of the company.
The conflict came to light when Ene-Obong filed a petition accusing the investors of orchestrating 54gene's collapse and attempting to dissolve the company without proper accountability. In response, a Federal High Court in Lagos issued an injunction halting the sale of 54gene’s assets, which notably include sensitive genomic data from 100,000 Nigerians valued at approximately $3 million.
Key details of the conflict include Ene-Obong's allegations that the investors sidelined the company’s board, rejected a $110 million rescue offer, forced the Nigerian operating company into bankruptcy, and threatened to spread rumours of a fraud investigation against him. The investors, on the other hand, are accused of making unilateral decisions on behalf of 54gene and blocking Ene-Obong's proposal to buy them out.
The assets involved in the dispute are crucial, containing biodata central to 54gene’s mission to harness African genomic insights for better health. The court injunction prevents any sale or transfer of assets until the legal matter is resolved, highlighting broader governance and ethical concerns about investor control versus founder rights in African startups.
Prior to the legal dispute, 54gene was once valued at $170 million with backing from prominent global investors. The company, once considered one of Africa's most promising biotech startups, had raised over $45 million and generated more than $20 million in revenue. At its height, 54gene had built Africa's largest independent biobank, collecting genetic material across 300 ethnic groups.
However, after a post-COVID revenue drop and a business pivot that struggled, internal tensions between investors and the founder escalated. The investors are said to have rejected Ene-Obong's offers to rescue the company with external funding, appointed a legal receiver to sell off assets without oversight, and threatened him with false fraud allegations.
This ongoing legal battle marks one of Africa’s most high-profile startup failures and could have significant implications for investor relations, corporate governance, and protection of sensitive data in the region’s tech ecosystem.
In a positive turn of events, Ene-Obong has since co-founded Syndicate Bio in September 2023, a new genomics venture with Jumi Popoola and Estelle Dogbo, to build genomic datasets across Africa and other diverse regions.
The legal dispute between Dr. Abasi Ene-Obong and major investors, including Cathay AfricInvest Innovation Fund and Adjuvant Capital, centres around 54gene's assets, which are crucial as they contain biodata central to the mission of harnessing African genomic insights for better health. The court injunction, issued in response to Ene-Obong's petition, prevents any sale or transfer of these assets, highlighting concerns about investor control versus founder rights in African startups.
The assets involved in the conflict are particularly significant because they include sensitive genomic data from 100,000 Nigerians valued at approximately $3 million, making the legal matter's resolution crucial for maintaining ethical standards in technology and biotech startups in Africa.
