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A review by aishaayoosh
Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou
5.0
Where do I even begin to write about what I have just read? My mind is blown!
Having graduated in Biomedicine and now studying and working in Finance, this book was a MUST read! I mean you do not have to have a scientific/financial background to understand what is going on in this book as the author makes it very understandable, but it does make it a more compelling read!
This is the story of Elizabeth Holmes, CEO of the Silicon Valley start-up, Theranos. Her Company claimed to have the technology to run various blood tests on a small amount of blood, usually from a single finger prick, and provide instant results. What actually happened was the demos showed mixed results and often the results were rigged to get investors to part with their money.
From tossing out unfavorable data, using existing technology to run tests instead of proprietary devices and passing it off as theirs, using venous draws for most tests instead of finger pricks, diluting already small samples of blood to increase the volume for tests (reduces the accuracy of testing), trial and error on the public, exposing patients to medical danger … the list goes on…and this is only on the medical side.
As for how the Company was run, Elizabeth fired her CFO for calling her out on making false and overstated projections, all in a ploy to get investors to part with their money. Elizabeth also ends up in a long-term affair with the COO, Sunny Balwani (a narcissistic bully if you ask me) all under wraps from the company board in a folie a deux convinced of the technology they claim to be harbouring. As for the board, a seemingly untouchable board, all members who graced the board of Theranos held high status, power and influence, but not one member had basic knowledge of blood science. I’m screaming POOR CORPORATE GOVERNANCE!! Also, to be mentioned, not one single venture capitalist with healthcare expertise put money into this Company.
To show you how bad things were, here is a review from a member of staff posted on Glassdoor:
‘“Super high turnover rate means you’re never bored at work.
Also good if you’re an introvert because each shift is short-staffed. Especially if you’re swing or graveyard. You essentially don’t exist to the company.
Why be bothered with lab coats and safety goggles? You don’t need to use PPE at all.
Who cares if you catch something like HIV or Syphilis? This company sure doesn’t!!
Brown nosing, or having a brown nose, will get you far.
How to make money at Theranos:
1. Lie to venture capitalists
2. Lie to doctors, patients, FDA, CDC, government. While also committing highly unethical and immoral (and possibly illegal) acts.”
The question is how did a Company so fraudulent get away with so much and for so long?
My answer would be privilege firstly. Elizabeth had all the right circles of influence around her and big money. Secondly, she has a very convincing and confident personality, she always knew her audience and how to captivate them. I mean she managed to defraud investors (for billions!), doctors and patients. Thirdly, because of her skewed moral compass, she was not afraid to do things most people won’t.
Whilst reading this, I watched most of the interviews she gave with CNBC, Mad Money, and Forbes because I was intrigued by her. How could you not be? I’m attracted to madness haha! Oh, and it was mentioned she made her voice baritone, that was interesting.
One other thing, she tried to emulate Steve Jobs in everything. Kale shakes, constant change of car so it was always plate -less, flying around in a jet, private security, and his trademark black turtleneck (LOL!)
Marcus Braun, CEO of Wirecard was arrested this year for manipulation of financials, and inflating revenues also wore a black turtleneck.
The FT quoted; if there are tell-tale signs that one should sell their stock in a Company, “the driving force behind the Company dresses like Steve Jobs” should be one to add to the list.
On that note, this is my book of 2020 and the longest review I have ever written. ✌
Having graduated in Biomedicine and now studying and working in Finance, this book was a MUST read! I mean you do not have to have a scientific/financial background to understand what is going on in this book as the author makes it very understandable, but it does make it a more compelling read!
This is the story of Elizabeth Holmes, CEO of the Silicon Valley start-up, Theranos. Her Company claimed to have the technology to run various blood tests on a small amount of blood, usually from a single finger prick, and provide instant results. What actually happened was the demos showed mixed results and often the results were rigged to get investors to part with their money.
From tossing out unfavorable data, using existing technology to run tests instead of proprietary devices and passing it off as theirs, using venous draws for most tests instead of finger pricks, diluting already small samples of blood to increase the volume for tests (reduces the accuracy of testing), trial and error on the public, exposing patients to medical danger … the list goes on…and this is only on the medical side.
As for how the Company was run, Elizabeth fired her CFO for calling her out on making false and overstated projections, all in a ploy to get investors to part with their money. Elizabeth also ends up in a long-term affair with the COO, Sunny Balwani (a narcissistic bully if you ask me) all under wraps from the company board in a folie a deux convinced of the technology they claim to be harbouring. As for the board, a seemingly untouchable board, all members who graced the board of Theranos held high status, power and influence, but not one member had basic knowledge of blood science. I’m screaming POOR CORPORATE GOVERNANCE!! Also, to be mentioned, not one single venture capitalist with healthcare expertise put money into this Company.
To show you how bad things were, here is a review from a member of staff posted on Glassdoor:
‘“Super high turnover rate means you’re never bored at work.
Also good if you’re an introvert because each shift is short-staffed. Especially if you’re swing or graveyard. You essentially don’t exist to the company.
Why be bothered with lab coats and safety goggles? You don’t need to use PPE at all.
Who cares if you catch something like HIV or Syphilis? This company sure doesn’t!!
Brown nosing, or having a brown nose, will get you far.
How to make money at Theranos:
1. Lie to venture capitalists
2. Lie to doctors, patients, FDA, CDC, government. While also committing highly unethical and immoral (and possibly illegal) acts.”
The question is how did a Company so fraudulent get away with so much and for so long?
My answer would be privilege firstly. Elizabeth had all the right circles of influence around her and big money. Secondly, she has a very convincing and confident personality, she always knew her audience and how to captivate them. I mean she managed to defraud investors (for billions!), doctors and patients. Thirdly, because of her skewed moral compass, she was not afraid to do things most people won’t.
Whilst reading this, I watched most of the interviews she gave with CNBC, Mad Money, and Forbes because I was intrigued by her. How could you not be? I’m attracted to madness haha! Oh, and it was mentioned she made her voice baritone, that was interesting.
One other thing, she tried to emulate Steve Jobs in everything. Kale shakes, constant change of car so it was always plate -less, flying around in a jet, private security, and his trademark black turtleneck (LOL!)
Marcus Braun, CEO of Wirecard was arrested this year for manipulation of financials, and inflating revenues also wore a black turtleneck.
The FT quoted; if there are tell-tale signs that one should sell their stock in a Company, “the driving force behind the Company dresses like Steve Jobs” should be one to add to the list.
On that note, this is my book of 2020 and the longest review I have ever written. ✌