On September 8, the beginning of Elizabeth Holmes's trial in federal court marked a new chapter in the fall of a Silicon Valley superstar - Theranos. The one-time multibillion-dollar biotech startup founded by Holmes later became the biggest corporate fraud since Enron.
Please join CFA Houston's Book Club meeting on October 21 at 6:30pm. We will discuss the book "Bad Blood - Secrets and Lies in a Silicon Valley Startup," written by the prize-winning journalist John Carreyrou, who first broke the story and pursued it to the end. This is a MEMBERS ONLY event!!
In 2014, Theranos founder and CEO Elizabeth Holmes was widely seen as the female Steve Jobs: a brilliant Stanford dropout whose startup "unicorn" promised to revolutionize the medical industry with a machine that would make blood testing significantly faster and easier. Backed by investors such as Larry Ellison and Tim Draper, Theranos sold shares in a fundraising round that valued the company at more than $9 billion, putting Holmes's worth at an estimated $4.7 billion. There was just one problem: the technology didn't work.
In 2018, Theranos was dissolved. That same year, Holmes and Theranos's former president, Ramesh Balwani, were indicted on charges of defrauding investors out of millions of dollars as well as deceiving hundreds of patients and doctors. The trial, which started on September 8, 2021, is expected to take at least 13 weeks.