Beware The Hype Machine: Lessons From Theranos

Unless you’ve been living under a rock lately, you’ve most likely heard about the ongoing saga of Theranos. For those who aren’t familiar, Theranos is a medical startup that claims to have developed a highly disruptive and revolutionary new means of conducting blood tests. These claims, however, have been called into question due to an investigative article in The Wall Street Journal this month by John Carreyrou.  Normally, a story about a startup potentially exaggerating their abilities would not be newsworthy. However, Theranos is not your typical startup.

Theranos and its 31-year old founder, Elizabeth Holmes, have been awarded nearly every accolade imaginable. The company has raised over $400 million at a staggering $9-billion-dollar valuation and received commendations from TIME Magazine and the White House.

By Chris Myers