One of these was Alethea Capital’s Tony Hsu. The two then showed some contacts in the US their product, who were then able to introduce them to several high-net worth individuals. A month later, Haddock – who had been working part-time on the startup – left Sea Monster to devote more of his time to 3X4 Genetics. In June last year Joffe and Haddock began offering their genetics test service to patients via health practitioners. The startup subsequently netted an investment of R4.8-million from Earthchild founder Jared Kahn. The following year the two pitched at genetics company Illumina’s accelerator. He describes himself as being involved in crafting the user-experience, while Joffe is involved in the genetics side of things. Haddock said the startup had come about after Yael pitched the idea to Sea Monster and he then pitched a technology solution concept to her, in late 2016. While he and Joffe had tried to source investment from South Africa, he said the move to source from the US was “definitely strategic” - as the market is far bigger for genetics tests, than in South Africa. Haddock said he and Joffe picked Seattle, when looking at the US, because unlike other states such as California, Washington state doesn’t have a state tax, making it more affordable to operate there, and why big tech companies such as Microsoft and Amazon operate from the state. While he expects to be in the US by March, with Joffe joining him in June next year, he says the US office’s first staffer is already due to start working from the US office from 6 January.Īt present, in the Cape Town office, the startup has 18 employees. Once this has been concluded he and Joffe will be able to apply for work visas to relocate to the US. He reckons things have gone faster for the startup, in part because the startup’s bank, FNB, is involved in helping complete some of the process - namely that of helping set up a US entity in Seattle, Washington and a SA subsidiary. Haddock said the initial exchange control process has taken three to four months so far - far quicker than the 18 months to two years which this type of application can typically take to finalise, he noted. The company will now be based in Seattle, with the Cape Town based business becoming a subsidiary of the US company.Īs part of the $2.5m deal, 3X4 Genetics is relocating its IP and the company to the US Speaking to Ventureburn yesterday, Haddock said while the deal is for $2.5-million, the startup has the option to access an additional $2.5-million at a later stage.Īs part of the agreement with San Diego based Alethea Capital’s Tony Hsu, 3X4 Genetics has had to move its intellectual property (IP) and the company itself, to the US.

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