Friday , September 17 2021

Instead of world-saving healthcare solutions, fake startup swallowed millions

Born in 1984, Elizabeth Holmes grew up in good conditions with a good family background. His father was vice president of energy giant Enron and his mother worked for the US Congress. The success of his parents motivated him early on to create something new, invent, preferably a fat oil that could benefit humanity. In 2002, he enrolled at the world-renowned Stanford University, where he studied chemical engineering. It was during this period of his life that he came up with his first revolutionary idea: to create a patch that would show if the wearer had contracted an infection and, if necessary, could release an antibiotic from himself for a diagnosed problem. .

A year later, in 2003, he started his own company, Theranos, with the money set aside for his work. Elizabeth promised to revolutionize blood-based diagnostics by founding the company. One of the early implementation plans was to develop a bloodless medical device, mainly inspired by Holmes’ needle phobia, according to a CNBC review.

He then sought a procedure This can diagnose hundreds of diseases in a few hours using a single drop of blood, including certain types of cancer, for example.Thus, by fulfilling the seemingly unbelievable promises of young, up-and-coming talent, it would have significantly reduced the high cost of laboratory tests and the duration of procedures.

Pictured is Elizabeth HolmesForrás: AFP via NurPhoto / Yichuan Cao

Fame and worship

At the time, the investor didn’t even need more, it had enough of the promises of ambitious health improvements made by Theranos, that if it happens, it will be so significant that the few billion dollars they will put into it will seem small. In addition to its economic and social benefits, Holmes’ presentations were so convincing and inspiring that technical details were completely pushed into the background – the review Növekedé emphasizes.Hopeful investors have invested hundreds of millions of dollars in capital for the startup, whose market cap can reach $9 billion, or roughly HUF 2,700 billion (!).

Holmes later said the company had raised more than $720 million from venture and equity investors.

And Elizabeth Holmes, for example, featured on the front pages of Forbes and Fortune as the world’s youngest freelance billionaire. His company’s board of directors included prominent figures such as Henry Kissinger, a former secretary of state, and media mogul Rupert Murdoch.

It is important to emphasize that the person is often more important to investors than what they advertise. And Holmes can be quite convincing. One of the defining parts of his lectures was when he told his uncle that he was diagnosed with skin cancer at a young age and therefore lost it early. The founder of Theranos has always emphasized that with the technology they have developed, fewer people will have to say goodbye to their loved ones early. In addition, Holmes was confident that with his company – essentially – he could save the world, which made him even more believable in the eyes of hopefuls. According to a CNBC report, the CEO was so successful because he believed his own lies.

Pictured here is Elizabeth Holmes posing backstage at the 2015 Woman of the Year Glamor Awards.Source: AFP / 2015 Getty Images / Nicholas Hunt

Balloon burst in dream

For years, the startup has been trying to hide the true results of its experiments: by citing trade secrets or the unreliability of negative news sources. But an article in the Wall Street Journal in 2015 exposed the company’s lies with the help of two researchers. The article claims that Theranos only uses conventional blood testing devices because the device, promoted as a pioneering technology Edison, is not licensed because it gives very inaccurate results.

This apparently not overpowering finding meant that a company built on lies was sentenced to death. The company was able to operate for a few more months after the disclosure material was released. Then in 2016, the U.S. Stock Exchange did not disclose that startup executives and employees were cheating on product launches or deceiving their partners and the government by not disclosing actual development details – revealing they could do nothing. to come true from solid promises.

Finally, charges were filed against the company in June 2018, and the liquidation of Theranos began in September.

After the scandal broke, a documentary film crew approached the company’s founder and Holmes told him he was convinced he was doing everything right. The staff’s producer, Jessie Deeter, said that Homes, the protagonist of the case, who is considered an up-and-coming professional and commercial talent, has shown no remorse for the confusing allegations of her company.

Pictured here is Elizabeth Holmes (left) talking to Alan Murray (right) at the 2015 Fortune Global Forum conference.Source: AFP / 2015 Getty Images / Kimberly White

Victim or criminal?

Kasvé wrote that, under the current charge, Holmes committed six petty frauds and could face up to 20 years in prison as a result. Meanwhile, although Holmes has repaid some of the shares, the money invested in his company has largely become a campus resource.

In an interesting addition, according to Reuters, the woman’s lawyers want to prove that Holmes was in principle having an affair with Ramesh Balwani, the former director of Theranos, who oversaw every step in the past. The woman said she could hardly make any decisions on her own, even what to wear or what to eat, so she could not be held responsible for her actions. She added that the man abused her many times, both mentally and emotionally. The former senior executive denies the allegations.

Holmes also has a child born in the summer and is likely to be considered by the judge if he is found guilty on the charges, which attorney Emily D. Baker says will not affect the case. As a result, there are all indications that Elizabeth Holmes’ lies can be proven, so she could face up to 20 years in prison if all the charges against her are true.

Elizabeth Holmes’ trial began in the first days of September, and NBC reported that the woman’s advocates will do everything in their power to portray Holmes in a positive light at the trials. The startup currently rated zero financially should be presented as a job creation company with 176 patents. Another curiosity is that the witness list includes John Carreyrou, who published material in the Wall Street Journal in 2015 and 2016 that led to the snake business coming to light. “He is an incredibly good actor,” says the journalist. “He can fascinate people and make them believe what he wants them to believe,” he added.

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