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  "documentTitle": "Ginkgo Bioworks (DNA)",
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  "authorName": "Scorpion Capital",
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  "presentationDate": "2021-10-06 00:00:00",
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  "notes": "The slide uses a 'villain' narrative by comparing Ginkgo's business practices to the failed WeWork IPO strategy.",
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      "kind": "callout",
      "text": "Ayana Bio and Verb Biotics are two shells Ginkgo created in Sept 2021 – our reading of the SPAC disclosures leads us to conclude that Viking and Cascade – two of Ginkgo's largest holders – recently invested $60MM total into both shells. Both have half-page websites that look like a cut and paste and appear to be hosted by Ginkgo.",
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      "text": "The math is genius and vaporous: invest $1 in a related-party and recycle it as $1 of “sales” – which gets marked up to $166 given its price to sales multiple of 166X.",
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      "text": "Verb Biotics and Ayana Bio websites are half a page",
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      "text": "price to sales multiple: 166X",
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      "text": "We are particularly troubled that Ginkgo’s largest holders are making massive investments in related-party “customers” that are just shells, which appear to have no employees or which otherwise strain credibility as ones they would fund if they were not recycling “revenue” back. The game that Ginkgo's backers are playing is the same that Softbank tried with WeWork. Softbank reportedly offered to anchor WeWork's IPO – offering more money to get a mark-up on its reportedly previous investments of $18.5B. We think Ginkgo's holders saw it for what is was – a failing company unable to attract real customers – and began to fund related-parties in what strikes us as an attempt to mark up their holdings. The math is genius and vaporous: invest $1 in a related-party and recycle it as $1 of “sales” – which gets marked up to $166 given its price to sales multiple of 166X.",
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      "text": "Among the ideas considered was SoftBank serving as an anchor investor in the IPO by buying a significant portion of the roughly $3 billion to $4 billion the company is expected to raise.",
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      "text": "Among the ideas considered was SoftBank serving as an anchor investor in the IPO by buying a significant portion of the roughly $3 billion to $4 billion the company is expected to raise. — WSJ article on Softbank/WeWork IPO",
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      "kind": "source-note",
      "text": "Source: https://www.ayanabio.com/; https://www.verbbiotics.com/; https://www.wsj.com/articles/wework-parent-weighs-slashing-its-valuation-roughly-in-half-11567689174",
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