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Elizabeth Holmes, an American businesswoman, became infamous for her role in Theranos, a healthcare technology company she founded and led.
While at its peak, the company claimed to have revolutionized blood testing and was valued at $9 billion; investigations found it allegedly deceiving with advertising and promises.
The scandal led to the collapse of the company and the indictment of Holmes and her ex-boyfriend/chief operating officer, Ramesh Balwani.
Despite her paper net worth of $4.5 billion at the company’s peak valuation, Holmes is currently reported to have a net worth of $0 due to relinquishing a large amount of equity in a company that eventually became worthless.
At a court appearance in Arizona years prior, Holmes had claimed to be incapable of affording an attorney and requested to be provided, counsel.
|Real Name||Elizabeth Holmes|
|Date of birth||February 3, 1984|
|Place of birth||Washington, D.C|
|Age||39 years old|
|Net Worth 2023||$0|
Founding of Theranos
Elizabeth Holmes founded Real-Time Cures in Palo Alto, California, in 2003 to democratize the healthcare system. She wanted to create a way to perform blood tests using only small amounts of blood to avoid needles, which she feared.
The company was later renamed Theranos, and Holmes was introduced to venture capitalists by her former Stanford advisor Channing Robertson. Steve Jobs inspired her, and she often imitated his style, wearing black turtleneck sweaters and speaking in a lower register.
Holmes raised around $6 million in venture capital by the end of 2004; by the end of 2010, the company had raised over $92 million. Initially, she ran the company without a website or any press releases.
In September 2013, Theranos partnered with Walgreens to create in-store blood sample collection centers. The media attention around Theranos grew the following year rapidly, with Holmes appearing on the covers of several magazines.
Elizabeth Holmes Is World’s Youngest Self-Made Billionaire
When Theranos reached its highest valuation of $9 billion, Elizabeth Holmes became recognized as the youngest self-made billionaire in the world.
At this point, she still owned 50% of the company’s equity, which gave her a peak paper net worth of $4.5 billion.
Downfall of Theranos
In 2015, the Wall Street Journal began a secret investigation into Theranos after receiving a tip from a medical expert who doubted the company’s blood-testing device.
Holmes responded by launching a campaign against the journalist and making various financial and legal threats.
However, in October 2015, the Journal published its findings, revealing that Theranos was providing inaccurate testing results through third-party machines.
The Centers for Medicare and Medicaid found irregularities at a Theranos lab, leading to Holmes being banned from operating a clinical blood-testing laboratory for two years.
In 2017, Arizona filed a lawsuit against Theranos for misrepresenting facts about its blood tests. Theranos shareholders agreed to dismiss litigation in exchange for preferred stock.
The SEC charged Holmes and Balwani with fraud in 2018, alleging that they took over $700 million from investors for a false product. The company was also found to have lied about the technology in the U.S.
Department of Defense used and its revenue stream. Holmes agreed to surrender voting control of Theranos and was banned from holding an officer position at a public company for ten years.
During Elizabeth Holmes’ criminal trial, it was revealed that Theranos was continuously losing money yearly. In 2010, the company lost $16.2 million, followed by losses of $27.7 million in 2011 and $57 million in 2012.
The losses continued to mount in 2013, with a staggering $92 million lost, averaging at $2 million weekly. By the end of 2014, Theranos had debts totaling $376 million and had only earned a meager $14,000 in revenue that year.
Elizabeth Holmes and Ramesh Balwani were indicted in June 2018 on 9 counts of wire and 2 counts of conspiracy to commit fraud.
The criminal, U.S. v. Holmes et al., was delayed due to the COVID pandemic and Holmes’s pregnancy but began in August 2021 and was prosecuted by the United States Attorney for the Northern District of California.
In September 2021, Holmes was found guilty on 4 counts of fraud and conspiracy to commit and faced up to 20 yrs in prison, plus a fine and restitution for each count. In Nov 2022, Elizabeth was sentenced to 135 months in prison for her crimes.
Elizabeth Holmes’ spectacular fall from grace has been the subject of various media projects. In 2018, John Carreyrou released his book detailing the rise and fall and Theranos. Legendary Pictures purchased the film rights before the book was even published.
Elizabeth Holmes House
Elizabeth Holmes, an American individual, has a highly complex story that unfolded in Silicon Valley. She was once the wealthiest young entrepreneur, but now she resides on bail in her massive estate, valued at $135 million, also located in Silicon Valley.
Elizabeth Holmes Cars
Elizabeth Holmes possesses several cars that she purchased a long time ago. Among her collection are a stunning Mercedes Benz, a Mercedes Maybach, a Porsche, and others.