Natera — Matthew Rabinowitz

Natera — Matthew Rabinowitz

Crucible Moments is a podcast series about the inflection points that shaped some of the most important companies of our time.
Natera began when a personal mission prompted founder Matthew Rabinowitz, a PhD in electrical engineering, to dive into the field of genetics. Over nearly 18 years, the company has made critical leaps to transform healthcare across several dimensions.

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KEY LESSONS

Being Mission-Driven is a Superpower: Matthew Rabinowitz's journey with Natera highlights the importance of a strong mission. His personal experiences drove him to solve significant problems in prenatal and cancer diagnostics. The sense of mission that pervades the company allowed it to overcome seemingly impossible obstacles and grow into a thriving business that’s making a big impact in healthcare.

Interdisciplinary Innovation Can Yield Profound Results: Natera's success was built on integrating unique insights across engineering, biology, and genetics. The founders leveraged their engineering backgrounds to innovate in the field of genetics, showing that crossing disciplinary boundaries can lead to groundbreaking solutions.

Expanding Your Scale of Ambition: Initially focusing on IVF, Natera recognized the limitations of that market—but successfully expanded the application of their technology into ever-broader categories, from natural pregnancies and oncology to organ transplants. This adaptability allowed them to benefit more people, tap into larger markets and drive significant growth.

Weighing Growth Opportunities and Opportunity Costs: Natera faced skepticism when venturing into unproven new categories before maximizing their penetration and margins with existing products. However, persistence and belief in their mission and technology helped them overcome these challenges. “Science doesn’t lie,” says Matthew. While the company worked doggedly on the commercial side, it ultimately put its faith in its technology, believing science would win in the end and its products would be adopted. The calculation proved correct.

Embrace Constraints: Natera initially secured funding through NIH grants, and Matthew says the process helped validate their technology and build credibility. Many times they’ve faced constraints in expanding to new categories while existing product categories were not yet profitable. These constraints “brazen” a company and force operating teams to learn to do more with less, which serves the company long-term.

INSIDE THE EPISODE

Natera early days
Sequoia investment memo
Natera early days
Natera early days
Natera early days
Natera early days
Early Robinhood footage courtesy of Adam Fowler
Jonathan Sheena and Matt Rabinowitz
Jonathan Sheena and Matt Rabinowitz
Jonathan Sheena and Matt Rabinowitz
Jonathan Sheena and Matt Rabinowitz
Chris Slowe and Steve Huffman
UiPath IPO April 2021
Natera IPO
Natera IPO

INSIDE THE EPISODE

Natera early days
Natera early days
Jonathan Sheena and Matt Rabinowitz
Jonathan Sheena and Matt Rabinowitz
Natera IPO
Natera IPO
Internal Sequoia Memo
DOWNLOAD PDF
DoorDash IPO
Steve Chen, Chad Hurley and Jawed Karim working on YouTube in 2005.
www.youtube.com domain registered in 2005 for $43.99
Jawed Karim in the first YouTube video, “Me at the Zoo”

Behind the episode

THE PEOPLE

Matthew Rabinowitz is the co-founder and Executive Chairman of Natera.
Matthew Rabinowitz is the co-founder and Executive Chairman of Natera.
Jonathan Sheena is co-founder and a Director of Natera.
Jonathan Sheena is co-founder and a Director of Natera.
Sarah Elliot is the Senior Director of the Executive Services at Natera.
Sarah Elliot is the Senior Director of the Executive Services at Natera.
Steve Chapman is CEO of Natera.
Chitra Kotwaliwale is Senior Vice President of Portfolio Management and Operations at Natera.

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