WhereIsAtlas · Biotech

Elizabeth Holmes

Theranos founder whose $9B blood-testing empire was built on fiction

Retired — Convicted of fraud in 2022; began an 11-year federal sentence in 2023.

Elizabeth Holmes dropped out of Stanford at 19 to found Theranos in 2003, promising a device — 'Edison' — that could run hundreds of medical tests from a few drops of blood. For a decade she raised more than $700 million, reached a peak valuation of $9 billion, and was hailed as the next Steve Jobs, complete with the black turtlenecks.

In October 2015 a Wall Street Journal investigation by John Carreyrou revealed that the technology did not work and that most patient samples were quietly run on conventional commercial machines. Regulators voided two years of test results; Walgreens abandoned the partnership; and the company dissolved in 2018.

In January 2022 Holmes was convicted on four counts of defrauding investors and sentenced to more than 11 years in prison. She reported in May 2023 to the Federal Prison Camp in Bryan, Texas. Her former partner Sunny Balwani received a nearly 13-year sentence in a separate trial.

Quick facts

Born
Feb 3, 1984, Washington, D.C.
Founded Theranos
2003 (age 19)
Peak valuation
≈ $9B (2014)
Convicted
Jan 3, 2022 — 4 counts of fraud
Sentence
≈ 11 years federal prison
Prison
FPC Bryan, Texas (May 2023)

Sources

Related: theranos · steve jobs · wework