How did Reshma Shetty combine her interests in computer science and biology?

Reshma Shetty studied computer science at the University of Utah while also working in a biology lab. She later pursued graduate studies at MIT, where she met collaborators and focused on integrating engineering principles with biology.

What was the most important piece of advice for starting Geno Works?

The most crucial advice came from Saul Griffith, who emphasized that the greatest skill for a startup founder is knowing how to live cheaply, which allows the company to sustain itself on minimal revenue.

What is Geno Works' core mission?

Geno Works' mission is to make biology easier to engineer. This mission serves as their compass and defines the company, guiding their efforts even when specific products or business models are not yet clear.

How did Geno Works build its first biology lab on a small budget?

During the 2008 financial crisis, Geno Works acquired used equipment from bankrupt biotech companies, often at a fraction of the original cost, enabling them to build their lab for around $150,000.

What market did Geno Works discover and capitalize on?

Geno Works found a market in 'cultured ingredients'—substances like flavors and fragrances normally derived from plants. They discovered they could produce these ingredients more efficiently through a 5-day yeast fermentation process.

How does Geno Works plan to address diversity within its workforce?

Inspired by the movie 'Moneyball,' Geno Works aims to treat diversity as a competitive edge by actively seeking and valuing individuals from underrepresented groups who may be systematically undervalued by the market.

Key Moments

Reshma Shetty Speaks at Y Combinator's Female Founders Conference 2016

Y Combinator

Science & Technology4 min read24 min video

May 31, 2016|5,882 views|46|2

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Key Moments

TL;DR

Reshma Shetty discusses founding Ginkgo Bioworks, the power of engineering biology, and the importance of diversity in startups.

Key Insights

Biology is the most powerful and inherently complex manufacturing platform, capable of self-replication, repair, and precise assembly.

Engineering biology involves designing and programming DNA and biological systems, representing the next frontier in design.

Ginkgo Bioworks was founded on the mission to make biology easier to engineer, not on a specific product or business model.

The company's early success was driven by a frugal approach, leveraging secondhand equipment and seeking product-market fit for five years.

Founding a company requires a clear mission to navigate the inherent difficulties and ups and downs.

Addressing diversity in startups early can be a competitive advantage, as underrepresented groups may be systematically undervalued by the market.

THE POWER AND POTENTIAL OF BIOLOGY AS AN ENGINEERING PLATFORM

Reshma Shetty opens by highlighting biology's unparalleled capabilities as a manufacturing platform. She points to plants as a prime example, possessing inherent traits like self-replication, self-repair, and self-assembly with nanoscale precision—qualities that are aspirational in other engineering fields. This inherent power and versatility are what drive her passion for biology as a substrate for engineering. The next century, she posits, will be defined by learning to design and program biological systems, positioning biology as the ultimate frontier for innovation and design.

THE ORIGINS AND MISSION OF GINKGO BIOWORKS

Ginkgo Bioworks, founded in 2008 and based in Boston, aims to design organisms to specification. Shetty recounts her personal journey, merging computer science with biology during her graduate studies at MIT. She met Tom Knight, a pioneer in computer science who later applied an engineer's perspective to biology, focusing on standardization and abstraction. This confluence of ideas among fellow graduate students—Shetty, Jason, and Austin—led to experimental projects, like engineering bacteria to produce specific scents, solidifying their belief in the potential of engineering biology.

EMBRACING A STARTUP PATH AND DEFINING A MISSION

The transition from academia to solving the challenge of engineering biology was not straightforward. Shetty and her co-founders were frustrated by the limitations of existing tools. While academia or industry are common post-PhD paths, they identified a problem they were passionate about solving and determined that starting a company was the best route. A pivotal piece of advice from Saul Griffith emphasized that the ability to 'live cheap' as a student is a key qualification for entrepreneurship. This resonated, leading them to commit to starting Ginkgo Bioworks, with an initial goal of getting it off the ground within a year.

THE CRITICALITY OF A MISSION-DRIVEN APPROACH

Shetty emphasizes that the most crucial first step in starting a company is defining its mission, drawing inspiration from Harvard Business School case studies on visionary companies. For Ginkgo Bioworks, the mission became 'to make biology easier to engineer.' This mission is distinct from a business model or product; it's the guiding principle that defines the company's core purpose. Despite having no product, technology, revenue, or customers initially, this clear mission served as their compass, providing direction and resilience through the company's formative stages.

BUILDING THE FOUNDATION WITH FRUGALITY AND PRODUCT-MARKET FIT

During their first year (2008), Ginkgo operated virtually and 'squatted' at MIT, focusing on generating enough revenue to cover basic living expenses, especially during the financial crisis. They adopted a frugal strategy, 'dumpster diving' for secondhand lab equipment from defunct biotech companies, assembling their first lab for around $150,000—a fraction of the typical cost. For the next five years, the team relentlessly searched for product-market fit, using a scientific method approach to test business model hypotheses aligned with their mission. They secured government grants and contracts to build a general technology platform before finally finding their market in cultured ingredients around 2012-2013.

IDENTIFYING A MARKET AND SECURING FUNDING

Ginkgo Bioworks discovered a significant market opportunity in cultured ingredients—substitutes for plant extracts like fragrances, vitamins, flavors, and sweeteners that are normally sourced from plants. They realized these could be produced more efficiently using yeast fermentation. This market, estimated at $3.5 billion for raw materials alone, offered a substantial advantage over traditional agriculture, which involves multi-year growing cycles and supply chain issues. With a validated business model and customer traction, Ginkgo secured its first external funding, joining Y Combinator in 2014 and subsequently raising significant Series A and B rounds.

THE STRATEGIC IMPORTANCE OF EARLY DIVERSITY INITIATIVES

As Ginkgo scaled post-Series B, Shetty reflected on the crucial issue of diversity. Despite being a female founder, the company's statistics mirrored those of many tech companies, with underrepresentation of women. She felt a personal responsibility to address this, acknowledging that achieving their vision of becoming the 'Intel of biology' would be diminished if they replicated the flawed diversity patterns of existing tech firms. This led to internal discussions about realistic diversity initiatives for a company of their size.

DIVERSITY AS A COMPETITIVE EDGE INSPIRED BY MONEYBALL

Shetty found a framework for addressing diversity by drawing parallels with the 'Moneyball' strategy used by the Oakland A's. This approach involved identifying undervalued assets in baseball players and leveraging them to build a competitive team. She believes that the systematic underrepresentation of women and minorities in technology and biotechnology suggests they are undervalued by the broader market. By making Ginkgo an attractive workplace for these groups, the company can gain a competitive edge. This proactive approach, starting early when a few hires can significantly impact diversity statistics, is seen as a potential differentiator.

Mentioned in This Episode

●Companies

●Organizations

●People Referenced

Common Questions

Geno Works is a biotech company founded in 2008, based in Boston. They specialize in designing microbes and organisms to specific requirements, with the goal of making biology easier to engineer.

Topics

Health & Longevity Technology & Innovation Business & Entrepreneurship Synthetic Biology Venture Capital Startup Founding Diversity In Tech Biotech Business Models

Mentioned in this video

Organizations

MIT Media Lab

The lab where Saul Griffith was a graduate student and later founded a company with his peers.

Harvard Business School

Provided a case study on 'Building Your Company's Vision' which inspired Geno Works to define its mission.

University of Utah

The university where Reshma Shetty studied computer science.

MIT

Massachusetts Institute of Technology, where Reshma Shetty went to graduate school and met key collaborators like Tom Knight.

People

Tom Knight

A co-founder of Geno Works, who was involved in the early days of ARPANET and later applied an engineering perspective to biology at MIT.

Steve Blank

Author whose book on building repeatable business models was followed by Geno Works.

Saul Griffith

A graduate student from MIT Media Lab who advised Reshma Shetty and her co-founders on starting a company, emphasizing the importance of living cheaply.

Companies

Geno Works

A biotech company based in Boston that designs microbes and organisms to spec, aiming to make biology easier to engineer.

Books

Moneyball

A movie that inspired Reshma Shetty's approach to diversity and inclusion within Geno Works, by looking for undervalued talent.