Brandice's Reviews > Bad Blood: Secrets and Lies in a Silicon Valley Startup

Fascinating! Bad Blood: Secrets and Lies in a Silicon Valley Startup is a detailed account of the (perceived) rise and demise of Theranos, a blood testing startup once valued at nearly $9B. I thoroughly enjoyed this book and barely wanted to put it down. It was baffling to read about the scams, stunts and lies this company pulled, led by founder Elizabeth Holmes and her former boyfriend, Ramesh “Sunny” Balwani. The red flags surrounding Theranos were rampant, and Carreyrou does an excellent job presenting the full scope of the situation and the company’s timeline.

“Why had Holmes always been so secretive about her technology? Why had she never recruited a board member with even basic knowledge of blood science? And why hadn’t a single venture capital firm with expertise in health care put money into the company?”

Holmes was a Stanford dropout who at the age of 19, started Theranos with the intent to revolutionize blood testing using just enough from a finger prick size sample. She exaggerated the company’s technological capabilities and grossly inflated its financial projections, as well as use of its device(s), regulatory approvals obtained, and partnership agreements.

“Theranos operates under a culture of secrecy and fear.” The company was a revolving door for the majority of its existence - Employees were frequently fired for raising any concerns and forced to deal with Balwani, Holmes’ second in command, who, according to the book, was perceived as a tyrant by many. There are plenty of supporting examples for this description of Balwani too. Numerous employees also resigned, unwilling to engage in deceptive, unethical practices and/or impatient with Holmes’ lack of direction, lies, and sharp corner-cutting.

In addition to establishing the secretive culture and work environment of Theranos, there is a fair amount of information in Bad Blood regarding the science and technology attempted by the company, as well as its involvement in legal proceedings. Both topics are easily digestible and not written with overly technical language. I am dumbfounded that so many investors just went along with the pitch and that more of them didn’t challenge the constantly ambiguous information being provided. Due diligence is real! It makes you wonder how some people got to where they are.

Bad Blood mentions several times that Holmes has a deep voice, often taking many people by surprise. Finally, after reading about it for the 7th time, I Googled a video of her to hear it for myself and I too was taken by surprise - It was not a voice I was expecting! Some former employees noted they suspected it was a front Holmes put on, to be treated equally and gain the same level of respect as men in the male-dominate culture of SV. Maybe, though this seems exhausting - I know I’d be tired from changing my voice that drastically ever time I spoke at work.

Holmes had an unabashed fascination with Steve Jobs. It is clear she liked the idea of being perceived as an innovative genius, though she is far from one herself. She wasn’t truly willing to do the hard work with a genuine “whatever it takes” attitude to get there. Hence the drastic cutting of corners, faulty devices, and unreliable work product of Theranos. She just wanted the fame and fortune, and inflated her sense of worth along the way, hiring excessive security detail and taking up most invitations to speak at industry events.

After I finished the book, I found myself reading more about the company and Holmes online, still in disbelief that this BS actually went on for so many years. The following quote from an October 2018 MarketWatch article notes:
“After Holmes burned through executives, cash, investor goodwill and regulatory patience, nothing of value was left but the company’s patents.”

Though Holmes settled her “massive fraud” charges with the SEC in early 2018, I am extremely curious to see how the remaining various lawsuits will pan out. Part of me suspects wealth and privilege will play a role in saving the day for Holmes, but given the critical nature of Theranos’ deceit (human health), I am hopeful this will not be the case. At some point, we need to bring down the hammer and demand enough is enough - False test results impacting doctors’ treatment plans and patients’ medical decisions seem like a great opportunity to do so.