6 Comments

Holmes fooled so many people because she was always talking to The Very Serious People — government leaders, CEOs, celebs, etc.

Had she pitched Theranos to anyone who actually had to consider how they spent their money, like a schoolteacher or a mid-level grocery store manager, they would've immediately known she was a fraud.

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That's an interesting point. I wonder early stage investments would change if a more diverse group of investors had access. Would there be higher or lower success rates? No idea, but interesting to think about.

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Brands Mean a Lot is missed a lot

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Considering how little white-collar crime is prosecuted, I wonder why she's being given such hardcore, public punishment. My guess is because she humiliated a whole class of investors so dramatically and publicly.

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I'm sure having all of those extremely powerful people upset with her is not helping her situation. Not only that, but she's brought a lot of negative attention to VC and startup culture in general.

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But iiuc, Theranos was unusual and notable in getting a lot of investment from outside the usual VC crowd. Theranos fooled the very pinnacle of the ruling class and they made a big show of backing and idolizing her. My guess has been that this distinction partly explains why she's being punished as she is. She exposed the utter idiocy of this ruling class and therefore its illegitimacy.

(Fwiw, I have no pity for her. I can dig the schadenfreude while acknowledging the moral bankruptcy of the process.)

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