Theranos is a Silicon Valley startup that has been in the news for all the wrong reasons. The company was once valued at $9 billion, but its reputation has since taken a beating after reports emerged that it may have exaggerated its technical abilities and lied about its business dealings.
Theranos, a billion-dollar startup you’ve never heard of, has been in the news lately due to allegations of fraud. The company is best known for its controversial blood-testing technology, which it claims can be used to diagnose diseases early. But Theranos’ story goes much deeper than that.
The company was founded by Elizabeth Holmes and her husband Randall W. Schulman in 2003. At the time, Holmes was a graduate student at Stanford University and Schulman was a computer scientist at Oracle Corporation. They started out by developing software that could automate blood tests.
Ramesh Balwani became the president and COO of Theranos in 2009, reigning the C-suite with her mentor, Elizabeth Holmes. But by early 2016, the company was in shambles after revelations that its claims of being able to conduct precision health tests using only small amounts of blood were fraudulent. In October 2017, Holmes was indicted on charges of fraud and conspiracy, leading to Sunny’s ouster from the company she once led.
How did Theranos get started?
Theranos, a Silicon Valley startup, made headlines in late 2015 after claiming to have developed a new way to perform blood tests that were faster and more accurate than traditional methods. However, the company’s practices came under scrutiny after it was revealed that their technology actually relied on old-fashioned centrifuges and analytical chemistry. In light of these revelations, Theranos shut down its labs and filed for bankruptcy in early 2016.
A company that has been shrouded in mystery for years claimed to have developed devices to automate and miniaturize blood tests using microscopic technology. The claims were made by Theranos, a company founded by Elizabeth Holmes, who is now facing charges of fraud. Holmes has since abandoned the company, leaving many questions unanswered.
Why is Theranos so different from other startups?
Theranos, a startup that has raised over $9 billion in the capital, is often compared to other Silicon Valley startups. Yet the company is different in several important ways. First, Theranos does not rely on many outside investors. Instead, it has been largely self-funded. Second, its products are not based on technology that is currently available on the market. Third, the company’s approach to data management and analytics is unique. Fourth, its corporate culture is very different from other startups. Fifth, the company has never released a product that meets all of the requirements set by regulators and customers. Finally, Theranos does not have an established customer base or revenue stream.
The controversies surrounding Theranos continue to mount as the company continues to reel from allegations of fraud and deception. Former employees and customers have accused the company of misleading them about the capabilities of its technology, while regulators have raised concerns about the accuracy of its testing results. While Theranos has yet to face any substantive legal consequences for its actions, the mounting scrutiny has caused its stock price to fall by more than 90% since its peak in early 2017.
What comes next for the company?
Since its founding in 2002, San Francisco-based social networking company Facebook has grown from a small online network for college students to one of the most popular websites on the planet. Now, as Facebook enters its tenth year as a public company, observers are asking what comes next for the company.
While there is no easy answer, some believe that Facebook will continue to grow its market share in countries such as China and India, where users are increasingly using the site to connect with friends and family. In addition, Facebook is expected to invest more heavily in mobile apps and video content in order to keep pace with growing competitor Google+. Finally, some analysts speculate that Zuckerberg may consider selling the company or splitting it into separate divisions.
