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American entrepreneur Elizabeth Holmes is worth exactly nothing. Theranos, the now-defunct healthcare technology business created and run by Elizabeth Holmes, gained her infamy, a brief paper riches, and a criminal sentence. When it claimed to have revolutionized blood testing, the company’s stock price went up.
Several investigations, on the other hand, concluded that the corporation was allegedly misleading investors through fraudulent advertising and promises. Due to the fallout of the affair, both Theranos and Holmes’ ex-boyfriend/chief operating officer Ramesh Balwani were indicted.
Elizabeth had a paper net worth of $4.5 billion when the company was valued at a high of $9 billion. Elizabeth was recognized as the world’s youngest self-made billionaire for her efforts. She was compelled to leave Theranos and give up a substantial amount of equity in the company after the controversy broke, and the equity was eventually worthless. Elizabeth claimed she couldn’t afford a lawyer when she appeared in court in Arizona years later and requested that she be represented by a lawyer.
Table of Contents
Elizabeth Holmes
| Net Worth: | $0 |
| Date of Birth: | Feb 1984 (38 years old) |
| Gender: | Female |
| Profession: | Businessperson |
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More than $945 million was invested in Theranos by investors including the Walton and Devos families, Henry Kissinger, and Rupert Murdoch at various funding phases.
An appeals court ruled on January 3, 2022, that Elizabeth Holmes had been convicted on four charges of wire fraud.
Early Life and Education
‘Elizabeth Holmes’ is a DC native who was born in 1984. As a child, Noel’s father, Christian, was an executive at the energy corporation Enron and her mother worked as a congressional committee staffer. While working for several government agencies following the company’s fraud scandal and eventual bankruptcy, he served as an executive officer. Holmes attended St. John’s School in Houston, Texas, where she was active in computer programming as a teenager. – Holmes She also had private Mandarin Chinese tutoring at home and spent the summer at Stanford University’s Mandarin program.
Holmes then went on to Stanford University, where he majored in chemical engineering and worked as a research assistant and student researcher. While working at the Genome Institute of Singapore after her freshman year, she examined blood samples for the SARS-CoV-1 virus. A wearable drug delivery patch was the subject of Holmes’ first patent application in 2003. She dropped out of Stanford the following year to pursue a career in healthcare technology.
Founding of Theranos
In 2003, Holmes established Real-Time Cures in Palo Alto, California, to decentralize the healthcare system. Because she was terrified of needles, she looked for a means to perform blood tests with only a small amount of blood drawn out of her arm or hand. Her former Stanford advisor, Channing Robertson, introduced Holmes to venture capitalists when she rebranded her business Theranos. Like Steve Jobs, Holmes generally wore black turtleneck sweaters and spoke in a baritone accent, showing off his admiration for the Apple co-founder.
After raising $6 million in venture funding by the end of 2004, Holmes’ company had over $92 million in revenue by the end of 2010. Holmes ran Theranos without a website or press releases for some time. A partnership with Walgreens was formed in September 2013 to construct blood sample collecting stations inside Walgreens stores. When Holmes appeared on the covers of multiple magazines in 2013, Theranos’ media attention surged.
World’s Youngest Self-Made Billionaire
Elizabeth was named the world’s youngest self-made billionaire when Theranos was valued at $9 billion. She had a high paper net worth of $4.5 billion at that moment because she still owned 50% of the company’s equity shares.
Elizabeth Holmes has a net worth of $4.5 billion. Meet the newcomers to the #Forbes400: http://t.co/9UohMWomrv pic.twitter.com/v9GR9HnAGM
— Forbes (@Forbes) September 30, 2014
Downfall of Theranos
The Wall Street Journal’s John Carreyrou conducted an undercover investigation into Theranos after getting a tip from a medical expert who was wary of the blood-testing device. In the end, Holmes realized that Carreyrou was the target of a campaign, and he made a series of financial and legal threats against the New York Times.
Although this was the case, in October of 2015, Carreyrou presented his findings demonstrating that Theranos was using commercial machines built by other manufacturers to provide incorrect testing results. Medicare and Medicaid Services (CMS) discovered anomalies at a Theranos laboratory in Newark, California in January 2016, and Holmes was officially barred from owning or managing a clinical blood testing laboratory for two years by CMS in July of that year.
In 2017, the State of Arizona filed suit against Theranos for misrepresenting information about their blood tests, leading to additional claims against the firm and Holmes. So, in exchange for their preferred stock, practically all of Theranos’ shareholders decided to drop any legal action. Holmes and former Theranos CEO Ramesh Balwani were charged with fraud by the SEC in March 2018 for defrauding investors out of more than $700 million. In addition, the corporation lied about its technology being used by the US Department of Defense and also about its revenue source, it was revealed. Holmes had to give up voting control of Theranos and was barred from holding an officer position in a public corporation for ten years as part of her settlement. In September of this year, Theranos was officially dissolved.
Theranos Losses
Elizabeth’s criminal trial would reveal that Theranos was losing money at an alarming rate. Losses totaling $16.2 million were recorded in 2010. The corporation made a $27.7 million loss last year. In 2012, there were $57 million in donations. The corporation lost $92 million in 2013, or $2 million every week on average, 2013. Theranos had $376 million in debt at the end of 2014. The company only made $14,000 in revenue last year.
Criminal Indictments
In June of this year, a federal grand jury indicted Holmes and Balwani on nine counts of wire fraud and two counts of conspiracy to commit wire fraud, respectively. U.S. v. Holmes, et al. commenced in August of 2021, prosecuted by the United States Attorney for the Northern District of California, following delays due to the COVID pandemic and Holmes’s pregnancy. She was found guilty of four charges of fraud and conspiracy and now faces up to 20 years in prison, as well as a fine and restitution.
Personal Life
A Pakistani immigrant 19 years her senior, Ramesh “Sunny” Balwani, was Holmes’ boyfriend at the time she dropped out of Stanford in 2003. In 2005, the two shared a home. Balwani joined Theranos in 2009 as chief operations officer after serving as Holmes’ business advisor in the shadows for several years. During the 2016 fraud investigations, he was forced to resign. Holmes married hotel heir William Evans three years later. The young family was discovered to be renting a $135 million mansion in the Silicon Valley town of Woodside during her criminal trial in 2021.
Media Legacy
Several media productions have been impacted by Holmes’ stunning fall. Before the publication of John Carreyrou’s book, “Bad Blood: Secrets and Lies at a Silicon Valley Startup,” which detailed the scandal surrounding Theranos founder Elizabeth Holmes, Legendary Pictures had already acquired the film rights to the book. A documentary about Holmes entitled “The Inventor: Out for Blood in Silicon Valley” aired on HBO in the following year, and Hulu announced the creation of “The Dropout,” a television series that would be based on the Holmes podcast of the same name.
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