elizabeth holmes theranos about venture capitalism

ELIZABETH HOLMES THERANOS ABOUT VENTURE CAPITALISM TRIAL
ELIZABETH HOLMES THERANOS ABOUT VENTURE CAPITALISM SERIES

What has made America and Silicon Valley great is its ability to recognize what is possible. “This verdict makes me concerned that the spirit of entrepreneurship in America is in jeopardy.

ELIZABETH HOLMES THERANOS ABOUT VENTURE CAPITALISM SERIES

In a response to a series of questions, Draper sent me the following statement via email: I’d love to get your feedback, comments or concerns.Tim Draper, a venture capitalist who wrote Holmes a $1 million check when she dropped out of Stanford at 19 to start Theranos, says he still believes in what Holmes was trying to do. Want to read more on this? Check out Alternative Venture Capital: The New Unicorn Investors. Is it “unfair” that mainly institutional investors and high-net-worth individuals are able to access private markets and benefit from them? Should we change the status quo? Various members drawn from the finance, business, law, accounting, and other communities, are very concerned that ordinary retail investors are missing out on investment opportunities due to the decrease in the number of publicly listed firms, the decline in the volume of initial public offerings, the fact that more money is being raised in private markets than public markets, and the rise in the number of unicorns. At the same time as companies continue to stay private longer and raise more capital in private markets, our regulators are pressured into democratizing and equalizing access to the private markets. Not to mention all these patients who actually relied on the company’s blood tests. Is everything securities fraud? What about a private company’s advertising campaigns for consumers, or publicity of the success of its products and affairs, for the purposes of increasing its private valuation? These investors do not hold shares in the private company directly or had any dealings with the private company or its officers or relied on any false statements made by the private issuer. What about the buyers that did not buy directly from the company? There are “indirect” investors, which invested via a fund (intermediary) that holds securities in late stage private companies. The buyer is basically waiving all claims against the seller arising out of the nondisclosure. They are used when the seller, has material, non-public information that it does not want to disclose, but both parties are aware and still want to complete the deal while precluding any claims based on the nondisclosure.

Private company executives are not immune from federal securities laws.īut, who are we trying to protect? I wouldn’t be surprised if the wealthy and sophisticated Theranos investors signed so called “big boy” letters-agreements between parties to a securities transaction. Perhaps it is time to think about culture: Is greed good? The chief executive officers of WeWork, Uber UBER and Zenefits have all resigned within the last few years because various allegations, ranging from mismanagement to fraud. Holmes, unfortunately, is not the only unicorn founder to get a lot of negative press coverage these days for breaking the law. In any event, the real issue to me is that this is part of a much larger problem we are witnessing. It’s possible, I guess, or it’s just bad timing.

Some critics say that the birth was deliberate-part of her ongoing publicity circus side-show.

As a woman and mother myself, this must be very hard. Especially, since Holmes recently gave birth and joined the ranks of motherhood.

ELIZABETH HOLMES THERANOS ABOUT VENTURE CAPITALISM TRIAL

One thing is clear: The trial is going to be interesting. The Theranos funding bubble burst when the Securities and Exchange Commission (“SEC”) charged Holmes with massive fraud. Did she fool patients, doctors, investors, journalists, White House officials, military generals and employees? Or is it just a case of another startup that faked it till it couldn’t make it anymore? She appeared on the covers of magazines, while Theranos enjoyed the benefits of an “all-star” board of directors, including a an “all start” medical advisory board. Indeed, Holmes was living in the fast lane.

Elizabeth holmes theranos about venture capitalism