A startup using AI to find new treatments for rare diseases just raised $121 million. Here’s why its CEO still has a dire prediction for the industry.

But ultimately,"I think it's hard to build a super-valuable business that changes the industry if you're focused on a single swathe. And that's where 90-plus-percent of the companies are," Gibson said in an interview at Business Insider's New York City headquarters in June.

Recursion has raised $333.7 million total, including the Series C, with a $646 million valuation, according to PitchBook.Creating a new drug takes a decade and costs a fortune. Investors have poured almost $1 billion into startups trying to change that. "Candidly, I think big pharma is asleep behind the wheel" in this area, Dar said. Lux Capital has $1.5 billion under management, and Recursion is"one of our biggest positions across our funds," Dar said.

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