Subscribe via RSS Feed Connect on Google Plus Connect on Flickr

The fourth post of pre-Christmas 2018: April

Sunday, 16 December, 2018

The winner of the FT and McKinsey Business Book of 2018 Award was Bad Blood by John Carreyrou, a reporter with the Wall Street Journal. His brilliant account of the spectacular rise and scandalous fall of Theranos, the high-tech blood-testing company, raises questions not only about the culture at this particular start-up — valued at more than $9 billion at one point — but of Silicon Valley and its sycophants, who boost every “breakthrough” as if it were the Second Coming. Accepting the award, Carreyrou said that readers of Bad Blood should note that the “move fast and break things” tech doctrine doesn’t work very well “when lives are at stake.”

Continuing with our review of the year, our post on 12 April was about the totally fraudulent Elizabeth Holmes, founder of Theranos.

*********

If you think Mark Zuckerberg is having a tough week, consider the (mis)fortune of Elizabeth Holmes. Remember her? The CEO of Theranos was the poster girl for all those who bought and sold the delusion that a photogenic founder was an essential first step on the road to unimaginable riches. And, sure enough, gullible investors and sycophantic media beat a path to the golden door in the Valley in the hope of turning blood into treasure. And they ponied up an incredible $1.4 billion along the way.

Zuckerberg may have been on the hot seat, but Holmes is in deep water. Consider the letter she recently sent to shareholders regarding the company’s looming default on a $100 million loan. Snippet:

“The most viable option that we have identified to forestall a near-term sale or a potential default under our credit agreement is further investment by one or more of you. In light of where we are, this is no easy ask. However, given your support of the company over the years, we wanted to provide this opportunity before we proceed too far down the current path.”

Holmes is a fraud, but one has to admire (almost) the chutzpa of “this is no easy ask”.

Miss Fortune

**********

Tomorrow, here, the fifth post of pre-Christmas 2018 is from May and its title, Seán Sa Cheo, refers to the risky business of climbing mountains in foggy conditions.


Comments are closed.