Elon Musk and Uber are still in the news. But there’s one Silicon Valley company that investors are taking a pass on this year: Theranos.
That’s the startup who recently filed for bankruptcy, including what some are calling an elaborate Ponzi scheme.
Shaky future: The FDA has halted all Theranos testing while it investigates.
Investors from Draper Fisher Jurvetson, where Holmes started out, to Sequoia Capital, were wiped out. And Theranos was seen as a pioneer in taking the technology of a lab into the home.
But The Wall Street Journal, which broke the story of what could be the most high-profile fraud in Silicon Valley history, just learned that the Federal Trade Commission is ready to file criminal charges against Holmes and Theranos.
Theranos is the latest example of how Silicon Valley firms have become better known for sweeping allegations about their business practices in headlines than they are for their successes and innovation.