Episode Overview

Podcast: The Investor With Joel Palathinkal
Host: Dr. Joel Palathinkal
Guest: Jason A. Scharf (Illumina)
Episode: “Illumina’s Life Science Accelerator”
Date: October 11, 2025

This episode dives into Jason Scharf’s personal journey in the life sciences and investment ecosystems, the evolution and opportunities in genomics, and a detailed discussion on Illumina’s unique accelerator model that supports startups in healthcare and genomics. The conversation is practical and candid, exploring industry trends, founder support, deal mechanics, and Jason’s vision for the future of biotech, digital health, and investing.

Guest Background and Career Journey

Jason Scharf shares his journey from aspiring scientist to investor:

• Early Beginnings: Grew up in Southern California, near Thousand Oaks and Amgen's shadow (01:14)
• Initially wanted to be a scientist, started at UC San Diego for molecular biology
• First big realization: Lab work wasn’t a great fit for him; discovered an interest in the business side of science (02:24)

  “I had this moment… actual lab work and I don’t quite mesh… so I married a PhD instead.” — Jason (02:13)

• Pivoted to roles bridging science and business: Covance, consulting, BD for startups and pharma giants
• Went back to San Diego for an MBA, experienced the challenges of the 2008 financial crisis
• Founded an independent consulting firm serving life sciences companies from pre-revenue to $100M in revenue (03:00)
• Transitioned to product strategy and market intelligence at medical software/device companies; acquired by BD
• Joined Illumina in 2018, drawn by its leadership in genomics and cost reduction breakthroughs

Career Lessons:

• Learned the importance of adaptability, mentorship, and getting executive coaching for clarity
• Realized he was more of an innovation catalyst and investor, not an operator CEO (06:15)

  “Maybe the actual entrepreneur CEO role wasn’t right for me. It's actually catalyzing innovation and working on the investing side.” — Jason (06:48)

Key Concepts: Genomics, Sequencing, and Market Landscape

The Genome and Its Industry Applications

• Definition: DNA’s A, C, T, G’s are sequenced to read an individual’s genetic code (07:41)

• Technological Impact: Human Genome Project dropped per-genome cost from $3.2B to ~$1,000 (06:33)

• Current Frontier: End of first wave—consumer genomics (23andMe, Ancestry); oncology breakthroughs; virus sequencing (COVID) (08:23)

  “Cancer really is a disease of the genome … subdivide [cancers] into 50 to 100+ types … helps us understand: What drug will work?” — Jason (08:23)

• Saturation & Opportunity: Room for growth—applications in diagnostics, synthetic biology, and digital transformation

Illumina’s Accelerator Model

Program Focus & Structure

• Target: Early-stage startups (pre-Series A) in therapeutics, diagnostics, software, synthetic biology (11:04)

• Class Size/Cohort: 4–6 companies per class; locations in SF and UK (12:06)

• Support Provided: Capital, sequencing access, coaching, VC/investor introductions, strong post-investment rates (93%) (12:06)

  “Really what we help them with … give them some capital, access to sequencing, coaching, and the network of VCs and other investors.” — Jason (12:22)

• Founder Profiles: Mix of research and tech backgrounds; founders often bring domain experience and personal connection to problems (13:19)

Startup Milestones and De-risking

• Focused on “killer experiments” and data that derisk a project (animal, in vitro, sometimes human data) (15:02)
• “You have less ‘product-market fit’ issues in life science… It's the technical risk.” — Jason (15:55)
• Milestones revolve around achieving data thresholds that validate further funding/investment (16:29)

Community, Sourcing & Ecosystem

• Sourcing: Mix of university spinouts, serial entrepreneurs, inbound from VC networks and genomics community (11:04, 12:06)
• Promotion: Webinars, publications (Genome Web), podcasts like this one

Unique DNA Storage Example

• Using DNA for data storage as a “new hard drive”—cutting-edge use of synthetic biology (11:35)

Investment Insights and Funding Dynamics

Fundraising and Investment Timelines

• Life science perceived as capital intensive with long runways, but:
  • Liquidity events (M&A, IPO): Often occur far before revenue—typically after promising Phase II trial results (18:51)

  “You as an early stage investor don’t necessarily have to wait all the way to revenue to see an ROI.” — Jason (20:10)

• Typical lifecycle for returns is 5–7 years, comparable to tech, but exits are driven by de-risked science, not revenue (21:03)

Angel Groups and Co-Investing

• San Diego Angel Conference: Generalist fund, event-driven, focuses on activating new angels (28:49)

• Investment process: Competitive multi-stage pitches; sector-agnostic investments (cleantech, agtech, life sciences)

• Fund Mechanics: Funded via SPVs; collect capital post-conference with some logistical friction (checks, wires) (34:13)

  “It's 2020 and … Payments are still kind of … it’s Venmo for Angel SPVs that we need.” — Joel (35:11)

• Angel Group Mission: Education and lowering entry barriers for new angels (29:23)

Industry Trends & Sector Outlook

• Big Trends in Life Sciences:

  • Convergence of data and biology (AI, big data in research)
  • Next-gen fields: neurotech (brain-computer interface), longevity, quantum computing’s role in drug discovery (36:50)

• Microbiome:

  • Still early but very promising; “biology is turning into a gigantic data science project.” (26:07)
  • Challenges: Proof points, avoiding overblown claims in consumer genomics (27:00)

• Cleantech and Agtech:

  • Impact solutions must come with ROI for adoption (31:15)
  • Examples: Waste-to-impact ink, water purification with energy byproducts, water plant efficiency—both impact and financial return focus

Corporate Versus General Accelerators

Two Corporate Accelerator Models:

1. Strategic M&A Model (e.g. J&J JLABS):
   • Goal: Develop products that might get acquired/absorbed by the “mothership”
   • Frequent liquidity events through acquisitions (40:54)
2. Platform Expansion Model (Illumina, Qualcomm):
   • Leverage core technology by nurturing startups developing new use cases, not necessarily for acquisition, but to catalyze new markets (41:34)

   “In the best case scenario, these aren’t companies that we would be acquiring. These are companies creating entirely new market segments for… sequencing.” — Jason (42:02)

Memorable Quotes & Moments

• “I wasn’t very good at the hands-on side of wet lab work. So I married a PhD instead.” — Jason (02:13)
• “Maybe the actual entrepreneur CEO role wasn’t right for me. It's actually catalyzing innovation and working on the investing side.” (06:48)
• “Cancer … is a disease of the genome … subdivide [cancers] into 50 to 100+ types … helps us understand: What drug will work?” (08:23)
• “Biology is just turning into a gigantic data science project.” (26:07)
• “Be bold and lean in now.” (44:28)
• “You as an early stage investor don’t necessarily have to wait all the way to revenue to see an ROI.” (20:10)
• “It’s 2020 and … Payments are still kind of … it’s Venmo for Angel SPVs that we need.” — Joel (35:11)

Notable Timestamps

• [01:14] Jason’s origin story and scientific aspirations
• [02:24] Pivot from science to business/innovation
• [06:15] Realization about founder/investor fit
• [07:41] Explanation of genomics and industry trajectory
• [10:02] Illumina’s backbone role in genomics ecosystem
• [11:04] Illumina Accelerator program design
• [12:06] Founder sourcing and support ecosystem
• [15:02] Life science startup milestones and risk
• [18:51] Life science funding stages and exits
• [28:49] Structure of San Diego Angel Conference
• [36:50] Excitement about neurotech, longevity, and quantum
• [39:26] Differences between corporate accelerator models
• [44:05] Jason’s closing advice for listeners

Closing Advice

“Life isn’t a straight line… The people who are bold and lean in now are the ones who are going to come out stronger. … Be bold and lean in now.” — Jason Scharf (44:05)

Summary

This episode is an essential listen for anyone interested in the intersection of science, technology, and investing. It offers a candid look at Jason Scharf’s path from scientific aspirations to catalyzing innovation as an investor, his views on the genomics landscape, and a practical breakdown of how Illumina’s accelerator both drives and depends on life sciences entrepreneurship. His insights on fundraising, startup support, and sector trends provide a roadmap for founders and investors navigating this dynamic, high-impact field.