When Elizabeth Holmes was just 19 she dropped out of Stanford and founded the $9 billion Silicon Valley unicorn, Theranos. A once celebrated entrepreneurial icon, things have not gone well for Elizabeth since.
Tomorrow will mark six months since Wall Street Journal broke the news that Theranos isn’t doing so well – and earlier this week, the Journal revealed that federal regulators are close to revoking the license of the company’s California lab. This will ban Holmes and Theranos president Sunny Balwani from running or owning any lab for two years.
You see, Theranos is a tech company that created a blood-testing device. Unfortunately, the company’s breakthrough technology simply doesn’t work.
Now, the company is being investigated over concerns on whether or not the company lied to investors about the state of its technology and operations.
In October, The Wall Street Journal reported that Theranos did the vast majority of more than 200 tests it offered to consumers on traditional lab machines purchased from other companies. The Journal also reported that some former employees doubted the accuracy of a small number of tests run on the devices Theranos invented, code-named Edison.
If you’re interested to know how such a highly valued startup, on its way to upending the $76 billion laboratory diagnostics industry by replacing test tubes of blood drawn from a vein with a few drops from a finger stick could fall so far so fast, read HERE.
[source: foxbusiness&wsj]
