And ultimately the counts that she was convicted on - she told some really tall tales. I think this is unusual it’s extreme it was extremely high profile. Lashinsky: I mean, the short answer is no. Do you think this example of Elizabeth - presumably headed for jail now - will make people reevaluate the tales that entrepreneurs spin in the effort to raise enough money to make their product actually work? And it seems that they may have proved their point that she could not be found guilty beyond reasonable doubt on those charges.īrancaccio: You’ve covered Silicon Valley and its culture for decades. And the defense asserted that the government had cherry-picked some bad situations, and that there were many, many other tests where things went just fine. They did not reach a verdict on some of the smaller investors, and they found her not guilty on any of the counts related to patients.ĭavid Brancaccio: So not guilty of defrauding patients who got these bum medical tests? And it’s interesting to consider that it was the three largest investors, specifically: a fund headed by a guy named Brian Grossman, the DeVos family and an investor who had a relationship and who brought in a bunch of other big investors, including the Coxes and the Waltons. The following is an edited transcript of their conversation.Īdam Lashinsky: They convicted her on four counts related to defrauding investors. Each of the four convictions carry a maximum sentence of 20 years.Īdam Lashinsky, who’s been covering the trial for Business Insider, spoke with “Marketplace Morning Report’s” David Brancaccio about what the case means for Silicon Valley and what’s next for Elizabeth Holmes. The jury was unable to reach a unanimous verdict on three remaining charges of defrauding investors. Holmes started Theranos as a 19-year-old Stanford dropout and drove its valuation to $9 billion before questions about its faulty technology led to its downfall.Īfter seven days of deliberations, a jury found Holmes guilty on four counts of defrauding Theranos investors and not guilty on four charges of defrauding patients. Elizabeth Holmes, founder and former CEO of the failed blood testing startup Theranos, has been convicted of fraud in a case that’s viewed as a landmark test of a Silicon Valley startup culture where dramatically overpromising and underdelivering is common but few entrepreneurs see jail time.
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