{ "docId": "019dd923-622c-750b-8b9a-1a3bea94baf9", "docSlug": "c358888161f0", "documentTitle": "Ginkgo Bioworks (DNA)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-10-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 70, "pageCount": 175, "prevPage": 69, "nextPage": 71, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 1, "notes": "The slide uses direct quotes from a former employee to frame the company's business model as a 'slush fund' mechanism for round-tripping revenue.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-1a3bea94baf9/70", "deckHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-1a3bea94baf9#slide-70", "components": [ { "bbox": null, "kind": "callout", "text": "Ginkgo really needs to control these entities because if they can't then—what they want is for these subsidiaries or for these joint ventures, these supposedly independent companies to be obligated to use Ginkgo services.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b62-723f-b68a-d2b352d1dea7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.62 }, "kind": "paragraph", "text": "Ex-employee described the related-party “customers” as “child companies of Ginkgo” and that “for sure Ginkgo controls all of those.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "88da1b8b-1138-4123-95d2-079d364a2b84", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.28 }, "kind": "paragraph", "text": "Ginkgo pushed for control at each entity as their revenue model was based on round-tripping; Ginkgo was allowed to do what it wanted at Joyn; “supposedly independent companies”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "96026610-5604-4afe-8ef7-9997f06f9de1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.68 }, "kind": "quote", "text": "“From a business perspective, they want all the revenue, and they want to control the entity, for sure. From a longer-term perspective, it really doesn't make sense for Ginkgo to call all of the shots because you really need to be producing long-term value. It reminds me a lot of RJ because, in the short term, everything looked amazing, but they never got a single project over the finish line, as far as I can tell. They couldn't complete this. And so, Ginkgo, to be successful, has to build long-term value. I know there's short-term, and now that they're a public company, definitely revenue expectations and things like that. But I think that—it's kind of interesting because the whole Ferment Consortium, this $300 million slush fund to start child companies of Ginkgo, I would say for sure Ginkgo controls all of those almost certainly.” – Former director-level employee", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "221f54e5-78cf-4ba0-ab13-692dd6b63276", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.34 }, "kind": "quote", "text": "“Ginkgo was kind of allowed to do what they wanted to do for the first period of the company [Joyn] at least, and that was really something that Jason Kelly and the group really sort of had pushed for, especially in Motif, at Allonnia, and the subsequent ventures, Ginkgo really needs to control these entities because if they can't then—what they want is for these subsidiaries or for these joint ventures, these supposedly independent companies to be obligated to use Ginkgo services, and Ginkgo services are very expensive. It's almost prohibitively expensive in some respects. But the idea is if you comparison shop, you can go elsewhere. It's actually kind of interesting like Joyn was doing a lot of work with this group with Culture BioSciences in South City, South San Francisco. And they're basically outsourcing their fermentation to them, not to Ginkgo. I would suspect that that was because of pricing and cost savings because they actually are not entirely obligated to use Ginkgo services, but that's the whole idea, is you're obligated to basically no matter what it costs. If Ginkgo says, pay us this, that's what you pay.” – Former director-level employee", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fbd8f74e-cc19-43f2-b719-faa62e730dfb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Ginkgo was kind of allowed to do what they wanted to do for the first period of the company [Joyn] at least, and that was really something that Jason Kelly and the group really sort of had pushed for, especially in Motif, at Allonnia, and the subsequent ventures, Ginkgo really needs to control these entities because if they can't then—what they want is for these subsidiaries or for these joint ventures, these supposedly independent companies to be obligated to use Ginkgo services, and Ginkgo services are very expensive.” — Former director-level employee; “From a business perspective, they want all the revenue, and they want to control the entity, for sure... the whole Ferment Consortium, this $300 million slush fund to start child companies of Ginkgo, I would say for sure Ginkgo controls all of those almost certainly.” — Former director-level employee", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b62-723f-b68a-d6df62bb25b8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "12399f8b-5d69-4902-a6fe-c66652f64cf0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "A former director-level employee stated that Ginkgo pushed for control at its related-party entities, as their model depends on “obligating” them to round-trip R&D spend back; “really needs to control these entities” or the rig breaks down; “supposedly independent companies”; described these “customers” as “child companies of Ginkgo” and that “for sure Ginkgo controls all of those.”", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ffcbe592-7b91-45aa-b807-e5f75ab2b060", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 175, "from": 9, "beatId": "ffe290af-3a4f-4e06-8d60-dfbfc07d2e08", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The deck presents evidence contradicting Ginkgo's claims and highlighting potential wrongdoings.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }