Biotech’s Theranos Offers A Cautionary Tale For Silicon Valley

Elizabeth Holmes, founder and CEO of Theranos, speaks at the Fortune Global Forum in San Francisco, Nov. 2, 2015.

Elizabeth Holmes fit into the Silicon Valley success mold. A young Stanford dropout who left school to pursue her entrepreneurial vision, she founded Theranos and said she would disrupt the world of medicine with easy and inexpensive blood tests.

But now her company is under federal investigation and extra scrutiny by federal regulators. And questions are being raised about whether applying hardware and software business culture to biotechnology is dangerous.

Holmes was an alluring figure; young and intense in the kind of way Apple founder Steve Jobs was. Like Jobs, she wore only black turtlenecks because she didn’t have time to think about her wardrobe.