Theranos is a Great Investment Opportunity!
A counter-intuitive take on a cautionary tale?
The first thing to realize is that I’m not just writing this article to be provocative. This is not just click bait1. I really do think “Theranos” tech—what they actually built—is a hot opportunity for investors in health tech, if it weren’t for the obvious imprisoned-founder problem. I also think that the government‘s prosecution of Elizabeth Holmes, although clearly demonstrated in a court of law to be justified, was misguided in important respects.
Did Theranos succeed as a company? Well, no. That’s why it’s a great investment opportunity! Theranos’ technology is nothing if not undervalued at this point. The Edison was able to do one or two tests, plausibly.
Let’s take the approach of an alien from another planet, who happens to be a venture investor. Thus, we can pretend we don’t know that Elizabeth Holmes and Theranos are synonymous with “cautionary tale for lying bullsh*t” and look at it with fresh eyes.2