Grail plans Series B round in excess of $1bn; closes initial tranches

Molecular diagnostics firm Grail Inc. (founded by Illumina last year) announced plans to raise at least $1bn through a Series B round from undisclosed private and strategic investors. The round is expected to close by the end of the first quarter. Proceeds will support development of the company's first blood-based cancer diagnostics, and will also be used to repurchase a portion of Illumina's stake. Following the transaction, Illumina will only own less than 20%, and instead of being a division, Grail will become one of Illumina's largest sequencing customers.