South San Francisco, CA — Twist Bioscience Corporation has officially spun out its DNA data storage division into a new independent company, Atlas Data Storage, marking a strategic move to accelerate development and commercialization of the emerging technology. The newly formed company has secured $155 million in seed funding from a group of prominent investors, including ARCH Venture Partners, Deerfield Management, Bezos Expeditions, Tao Capital Partners, and In-Q-Tel.
Atlas will be led by Varun Mehta, a veteran of the data storage industry and founder of Nimble Storage, which was previously acquired by Hewlett Packard. Twist co-founder Bill Banyai, Ph.D., will transition to Atlas as Chief Technology Officer. Emily Leproust, Ph.D., CEO and co-founder of Twist, will serve on the Atlas board of directors.
The spinout allows both companies to sharpen their strategic focus. Twist will continue its work in synthetic biology and genomics, serving customers across the life sciences and diagnostics industries. The company now expects to achieve adjusted EBITDA breakeven by the end of fiscal 2026, aided by a renewed focus on core business operations and profitability.
“With this transaction, Atlas can focus exclusively on commercializing DNA data storage technology, while Twist remains committed to driving revenue growth and operational efficiency,” said Leproust. “This structure enables both organizations to pursue their respective markets with greater speed and precision.”
Under the terms of the agreement, Twist has licensed and assigned its DNA data storage intellectual property to Atlas in exchange for a minority equity stake, a secured promissory note, and upfront cash. Twist will also be eligible for royalties and milestone payments tied to Atlas’s future commercial success.
Atlas aims to address the growing global demand for long-term, sustainable data storage solutions, leveraging synthetic DNA’s potential to store vast amounts of information in an ultra-compact and durable format. As an independent entity, the company plans to accelerate efforts to bring its first DNA-based storage products to market.
“With growing global data needs, DNA represents a revolutionary storage medium,” said Mehta. “Our focus now is to turn this promising technology into a scalable commercial product.”
The spinout was approved by an independent special committee of Twist’s Board of Directors, with Jefferies LLC acting as financial advisor. Both Twist and Atlas will operate as separate entities with distinct leadership teams.
