![]() ![]() ![]() Shah says the problem with Theranos was the hype exceeded the reality. a rock star executive board… what’s not to like?” a rock star CEO in Elizabeth Holmes, who was held out as a Steve Jobs-esque figure…. Theranos hit many of these criteria… extremely credible investors including Rupert Murdoch, Henry Kissinger, Larry Ellison, Betsy DeVos, the Walton Family, Threshold (formerly DFJ) …. “They’re less concerned about market validation, and more concerned about marketing. “They’re less concerned about the business, and more interested in who else has invested, and how well the entrepreneur can continue to raise. “One of the dirty secrets of funding is that many venture funds aren’t concerned about the long-term, but rather are concerned about value growth between rounds. “Theranos is a case study in how the venture capital market chases outsize returns,” he says. Vikas Shah MBE is a UK entrepreneur, investor and philanthropist and believes lessons must be learned from the rise and fall of Theranos. The claims helped Theranos raise $900m from investors but its fortunes began to unravel when the Wall Street Journal published a series of articles questioning the capability and accuracy of some of the firm’s technology.Īfter a lengthy trial, a jury in California found 37-year-old Holmes guilty of four of 11 fraud charges and she now awaits her sentence.Īnalysts say the Theranos story should signal the end of the ‘fake it until you make it’ culture in Silicon Valley. The one time darling BioTech startup of Silicon Valley saw its valuation peak at $9 billion on the back of claims it could detect hundreds of conditions with only a few drops of blood. The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.The conviction of Theranos founder Elizabeth Holmes on four counts of fraud should be a ‘wake-up call’ to tech investors and tech entrepreneurs going forward. As medical systems address a national public health crisis and pervasive structural inequities, we must align stakeholder incentives between industry and academic biomedical innovation to rebuild trust with our patients.īiomedical innovation Diagnostics Funding Research Theranos Venture capital. ![]() Theranos affected the lives and health of patients further disrupting an already tenuous relationship between healthcare and the public - the importance of which cannot be understated in the setting of the COVID-19 pandemic. Investigations into Theranos' dubious operations and inaccurate test results exposed the failed venture which had squandered millions of dollars. By exploiting gaps in regulatory policy, Theranos brought its panel of laboratory tests to patients without pre-market review or validation from peer-reviewed scientific research. was a privately held corporation that aimed to disrupt the diagnostics industry with rapid, direct-to-consumer laboratory testing using only "a drop of blood" and the company's patented Nanotainer technology. After raising more than $700 million, Elizabeth Holmes, the founder and chief executive officer of a healthcare startup once valued at $10 billion, was found guilty on four charges of defrauding investors. ![]()
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