Theranos founder fooled investors with the promise to revolutionize healthcare – it offers three big lessons for companies
Less than three months after being charged by the US Securities and Exchange Commission(SEC) with “massive fraud” and barred from being the CEO of a public company for ten years, entrepreneur Elizabeth Holmes is reportedly on the hunt for investors for a new company.
She is still allowed to be the CEO of a privately held company – but would-be investors should heed the lessons from Holmes’ last venture, Theranos.
In 2003, 19-year-old Holmes dropped out of Stanford and founded the health tech firm, Theranos. It worked in “stealth mode” for a decade while developing new technology to perform many standard medical tests using only a single drop of blood. After unveiling the company’s device and its plans to revolutionize the healthcare industry, Holmes was heavily profiled in the media and embraced the role of guru.
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