Current Events > It's just amazing how Elizabeth Holmes became a billionnaire.

(+) Yeah! (+)

When she dropped out of university, she only had 2 semesters of chemistry there, and no real knowledge of engineering at all. She then spent a few years building up her company, and at some point she became a billionnaire. How is this possible?

She came from existing wealth going back generations and her parents had existing business/political connections.

Her parents bankrolled her first business and used that experience and networking she did in college to start (what would become) Theranos and secure its first investors.

That doesn't really explain how she became a billionnaire though, does it? She knew almost nothing about the field she claimed to be amazing in.

Culture of tech entrepreneurs throwing money at other tech entrepreneurs. Part FOMO, part love of risk taking.

Shoot_FTH posted...

That doesn't really explain how she became a billionnaire though, does it? She knew almost nothing about the field she claimed to be amazing in.

Rich people don't need to know anything.

Being rich makes it much easier to get richer than anything else does.

Sounds like a someones hinting at something, but what

R1masher posted...

Sounds like a someones hinting at something, but what

Never give them what they want. It only encourages them.

CRON posted...

She came from existing wealth and her parents had existing business/political connections.

Her father was an executive at Enron who himself participated in the Enron scandal. The reason no scientist, including her professors, warned the public about her was because she threatened to sue them for libel.

Our laws are set up to punish whistleblowers even when their actions could save lives. Look what happened to the engineer who spoke out about the O-ring flaw on the Challenger shuttle's main boosters. They ruined his career for doing the right thing.

Her status as a billionaire was purely speculative based on her company's product actually being able to do what it claimed.

She was never a billionaire, anymore than someone with negative equity in a million dollar house they will never be able to pay off is a millionaire.

She cheated the system and now she's in prison

BB_mofo posted...

Her father was an executive at Enron who himself participated in the Enron scandal. The reason no scientist, including her professors, warned the public about her was because she threatened to sue them for libel.

Our laws are set up to punish whistleblowers even when their actions could save lives. Look what happened to the engineer who spoke out about the O-ring flaw on the Challenger shuttle's main boosters. They ruined his career for doing the right thing.

Yup this country is obsessed with "procedures and proper channels". Even to the detriment of the population.

Shoot_FTH posted...

How is this possible?

Because it was a valuation of her worth. She didn't actually have that money. It'd be like if you found some special space rock in your backyard and people kept bidding on it until it's worth a billion dollars. You'll be considered a billionaire by how society measure wealth today.

Then it turns out it wasn't special at all so the bids go away and you lose your billionaire status.

Watch the documentary about it, it's pretty insane the full story

I haven't watched the documentary, but what I'm really curious about was...what was the end goal? They must have known very early in development that their technology was bogus. So how were they going to fudge this? Just hope it would gloss over or they'd get the tech right eventually?

CRON posted...

She came from existing wealth going back generations and her parents had existing business/political connections.

Her parents bankrolled her first business and used that experience and networking she did in college to start (what would become) Theranos and secure its first investors.

Her family was also tied with Enron, so she grew up around people who knew how to set up pyramid schemes. She just needed to find suckers to invest.

pinky0926 posted...

I haven't watched the documentary, but what I'm really curious about was...what was the end goal? They must have known very early in development that their technology was bogus. So how were they going to fudge this? Just hope it would gloss over or they'd get the tech right eventually?

Just like most rich company leaders that banked off 100% fraud. They take the money and run.

she put on a fake deep voice to show strength, and dressed like steve jobs. bam, 3 comma club

she's a girl boss

pinky0926 posted...

I haven't watched the documentary, but what I'm really curious about was...what was the end goal? They must have known very early in development that their technology was bogus. So how were they going to fudge this? Just hope it would gloss over or they'd get the tech right eventually?

Basically.

"Fake it 'til you make it" is a buzzword for some startups and her case has deservedly shone light on what can go wrong with that kind of thinking.

pinky0926 posted...

I haven't watched the documentary, but what I'm really curious about was...what was the end goal? They must have known very early in development that their technology was bogus. So how were they going to fudge this? Just hope it would gloss over or they'd get the tech right eventually?

Maybe she thought if she could buy enough time her team would get the tech working but people who commit this kind of fraud don't necessary have a clear exit strategy. Just look at Bernie Madoff or SBF. Their financial schemes were inevitably going to collapse at some point, but they either had too much hubris to realize that or once they did they were already in so deep they felt they had no choice but to try to keep it going anyway.

Honestly if she had a end goal it was lost long ago trying to make her company look legit. The medical field is one of the hardest fields to commit fraud and when you have a big company behind a major conspiracy it's only a matter of time before it crashes down hard.

Start up culture is gambling for rich people. You invest in a bunch of them and if one hits you make all the money you lost on the others plus much more.

They know most of these companies are full of shit, they dont care. Its just buying a lottery ticket.

Homeless_Waifu posted...

Honestly if she had a end goal it was lost long ago trying to make her company look legit. The medical field is one of the hardest fields to commit fraud and when you have a big company behind a major conspiracy it's only a matter of time before it crashes down hard.

I work in Medicare fraud, its actually extremely easy to commit fraud.