Home Former Alibaba Engineers Bring 'Life Computing' to the Cloud with GeneDock IPO Filing

Former Alibaba Engineers Bring 'Life Computing' to the Cloud with GeneDock IPO Filing

Mar 23, 2017 08:00 CST Updated 08:00

In 2014, the cost of human whole-genome sequencing dropped to $1,000, ushering in the first boom for the global genetic testing industry, with China’s market experiencing explosive growth. In 2017, Illumina further reduced the cost of whole-genome sequencing to $800. As sequencing costs declined, genomic data worldwide continued to accumulate at a rate exceeding Moore’s Law. Computational analysis and interpretation of genetic data have always been critical components of genetic testing. Amid this surge in data, how to perform faster and more accurate data analysis and interpretation will be the next key challenge facing the genetic testing field. Seizing this opportunity, VCBeat is launching its “Genes & Data” series of reports; stay tuned for further details.


GeneDock (Judao Technology) is a data technology company specializing in the genomics sector. By leveraging omics data technologies—including omics data warehouses, research-clinical collaboration systems, bioinformatics computing environments, and omics data mining—GeneDock helps clients build omics data management platforms. It provides integrated solutions for the transmission, storage, analysis, computation, collaboration, and application of genomic data. Additionally, GeneDock offers open APIs and development environments, enabling users to conveniently manage and manipulate data while seamlessly integrating with their own proprietary systems.

 

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The company boasts a comprehensive R&D environment with both hardware and software infrastructure. Its public cloud platform integrates computing resources from thousands of nodes across multiple computing domains, while also offering dedicated private cloud solutions. The company currently serves clients including the Chinese Center for Disease Control and Prevention (China CDC), research institutes, Grade 3A hospitals, pharmaceutical R&D enterprises, and genetic testing companies.


Leverage Synergies in the Data Processing Phase


In 2014, Li Xiarong was serving as the Chief Data Scientist at Umeng, Alibaba Group, when he learned about the gene sequencing industry through friends. He was deeply intrigued by the rapidly advancing sequencing technologies and the emerging applications of genetic testing. With a background in data science, Li clearly recognized that big data technologies, which were increasingly permeating various sectors, could play a significant role in the field of genomics. In particular, the models for generating, applying, and mining gene sequencing data had become well-defined, and a data closed-loop was taking shape. He told VCBeat, “Genomic data processing involves multiple institutions and diverse experts, making collaboration an inevitable requirement as the field matures. I believe there is substantial market potential for genomic data analysis and applications.” It was at that time that Li began to consider entrepreneurship.


After obtaining genomic data through sequencing, additional steps such as quality control, analysis, annotation, and interpretation are required to generate the reports and insights needed by end users. The volume of data generated from sequencing each sample can reach hundreds of gigabytes, posing challenges for data transmission across upstream and downstream segments of the industry chain. On the other hand, the industry has traditionally relied on localized small-scale clusters for bioinformatics data analysis. However, with declining sequencing costs, deep analysis of large sample cohorts has become a new trend. Consequently, how to improve bioinformatics analysis efficiency while controlling hardware investment costs has become a shared concern across the industry.

 

The international genetic market started earlier, and genomic data analysis is also ahead. Currently, there are many mature bioinformatics cloud platforms abroad, such as Seven Bridges Genomics, DNAnexus, NextCODE (acquired by WuXi AppTec), and Illumina's BaseSpace. Among them, Seven Bridges Genomics won the $5.8 million cancer genomics cloud computing project from the U.S. National Cancer Institute in 2014. At that time, there was no similar gene data cloud platform provider in the domestic market. With years of experience in big data and research on related markets at home and abroad, Li Xiarong judged that cloud platforms would be the future trend for gene data processing. He contacted Wang Leheng, who was then the big data product manager at Alibaba Cloud, and found several partners in the field of bioinformatics to start their entrepreneurial journey with GeneDock in a residential building.

 

Business Model vs. Product: The Dilemma in the Early Stages of a Startup


At the outset, the team consisted of only four or five people, including the founder and early core members. With no clients yet secured, product design was driven entirely by their own understanding of the industry and existing experience in the field. Li Xiarong recalled, “Back then, we holed up in our office every day writing code, unsure of what users actually needed. It felt like we were working in isolation.”

 

Even though the work environment was far from glamorous, the team’s entrepreneurial enthusiasm remained high. Their goal was clear: to build a cloud computing platform for genomics. The most pressing challenge at the time was determining how to proceed and what the final product should look like. Without a product, it was difficult to attract customers; yet without customers, they could not understand user needs, making it impossible to assess the product’s market value. Furthermore, differences between domestic and international contexts raised doubts about whether mature foreign models could be directly applied. Additionally, there was the question of whether the product should serve purposes beyond meeting the needs of genomic data analysis. These were the issues that Li Xiarong grappled with every day.

 

In September 2014, Li Xiarong met Dr. Hang Xingyi, the founder of iGeneTech, at a conference. The two hit it off immediately, sharing similar insights and understanding of cloud trends in bioinformatics. Consequently, iGeneTech became GeneDock’s angel client. “By serving iGeneTech, we identified broader industry needs. We were quite fortunate to encounter such an angel client.” As its products gradually matured, GeneDock began engaging with diverse clients and scenarios, including the Chinese Center for Disease Control and Prevention (China CDC), Southwest Hospital, and Genetron Health. With increasingly comprehensive user scenario profiles on one hand, and continuous experience accumulation and self-improvement through market engagement on the other, GeneDock started to achieve greater results and recognition. In the second half of 2015, GeneDock officially launched its bioinformatics cloud platform based on public cloud infrastructure. Meanwhile, the company completed its RMB 15 million Series A financing round, led by Matrix Partners China.

 

“But having just a product is not enough; we need to further understand and uncover customer needs and market pain points.” This IT-trained engineer did not limit himself to product and technology. Once the team and product had taken shape, Li Xiarong embarked on exploring business models. Over the next six months, he led his team in thoroughly assessing the current landscape of gene companies, research institutions, and clinical organizations across China, striving to deepen R&D efforts aligned with users’ genuine needs and expand the user base.

 

Not content with a single point, providing more comprehensive services

 

In 2016, GeneDock’s business model gradually became clear. Leveraging its robust capabilities in genetic data management and analysis, GeneDock provides services to the genetic testing industry, including omics data warehouses, research-clinical collaboration systems, bioinformatics analysis and computing platforms, and genomic data mining. By utilizing these services, GeneDock’s clients can conduct their operations at lower costs, with greater efficiency and higher levels of automation, while establishing a secure and stable business environment. As data volumes and user numbers continue to grow, clients can further leverage GeneDock’s services to accumulate and deeply mine both omics and phenotypic data, thereby unlocking greater value from their data assets.

 

In addition, GeneDock can tailor omics data management and collaboration solutions—including public cloud, private cloud, or hybrid cloud deployments—to meet the specific needs of different user types, helping them address challenges such as the secure management and efficient collaboration on massive genomic datasets.

 

For GeneDock, product development should not merely focus on meeting market demands at a single point; instead, it should integrate various product modules and services to form a comprehensive solution. To meet customer needs and help them achieve their core objectives, GeneDock has consistently advanced its product iterations. For instance, its robust enterprise-level account and resource permission system enables companies to better manage organizational structures and data. Additionally, its phenotype and genotype data warehouses help medical and research institutions strengthen the foundation for big data mining and applications. “Rather than simply addressing a specific user need, we combine the client’s business scenarios with their long-term development goals and industry trends to identify more comprehensive solutions that better serve our customers,” Li Xiarong told VCBeat.

 

Advances in analytical technologies and declining sequencing costs are making gene sequencing increasingly accessible to the general public. The pace of change in this industry is accelerating, with genetic testing moving toward clinical applications, while advanced IT technologies such as cloud computing and blockchain are playing an increasingly important role. Although the industry has its own unique characteristics, such as stringent requirements for data security and privacy, the trend of rapid development and growth driven by IT technologies is already evident. Against this backdrop, GeneDock will leverage its technological strengths to become a trusted partner for genetic data technology in the genetic testing industry.

 

Final Thoughts


At the end of the interview, the reporter asked Li Xiarong about GeneDock’s milestone events. After a brief pause, Li replied, “Every customer is our milestone.” This unexpected answer surprised the reporter. He then explained, “Each customer is actually a key partner in our growth, offering numerous product suggestions. Therefore, every customer has significantly helped us improve during the iteration of GeneDock’s products and services.” GeneDock’s partners include enterprises, government agencies, and healthcare institutions. Customers from different sectors serve distinct end-user populations, leading to varied needs. It is perhaps this diverse customer base that has enabled GeneDock to gain a more comprehensive understanding of the real-world demands in this field, reflecting such insights in the design and development of its products and services, and ultimately helping partners achieve success through omics data technology.