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Theranos: How Did a $9 Billion Health Tech Startup End Up DOA?
Dal Bó, Ernesto , and Guo Xu
Publication date: 2/1/2021, pages 1-7

Stanford University drop-out Elizabeth Holmes hoped to disrupt the traditional $75 billion blood-testing business with only one drop from a finger prick instead of several vials of blood. The revolutionary claim of Theranos’ founder was that her groundbreaking technology enabled a full range of laboratory tests from a tiny sample. The Silicon Valley company, founded in 2003, assembled a powerful board and high-profile investors, becoming a media darling valued at $9 billion. By 2018, federal prosecutors filed criminal charges alleging Holmes had defrauded investors and mislead doctors and patients. The health technology company crashed from unicorn status leaving questions about what factors silenced doubters and enticed high-profile investors.

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