Elizabeth Holmes Net Worth: Her net worth was estimated to be $4.5 billion at the time by the business magazine Forbes, who named her the youngest and richest self-made woman in the United States at the time she was 31 years old.
A Wall Street Journal investigation revealed that the company’s success had also attracted attention, and the alleged lie at the heart of Theranos was revealed.
Following the discovery of problems with Theranos technology in 2016, Forbes revised its previous $4.5 billion estimates of Ms Holmes’ net worth to $4.5 billion.
It was “basically nothing” according to their new estimate. Elizabeth Holmes, the 37-year-old founder and former CEO of Theranos, is currently on trial for fraud and breach of contract.
For those of you who have read or heard about Theranos in the form of books, podcasts, or television shows, the company promised a new, revolutionary way to draw and test blood using only a finger pinprick. Holmes asserted that her device was capable of detecting major medical conditions such as cancer and high cholesterol levels, among others.
What exactly is the problem? The machines did not function in the manner described. According to Forbes, Holmes founded the company in 2003 after raising $700 million in venture capital.
And her fall has been a difficult one for her. An indictment filed by the United States Justice Department claims that Holmes and “her business partner and onetime boyfriend, Ramesh Balwani,” were aware that the blood test device had serious flaws, including being unreliable and slow. Despite this, they told their investors that the company would generate $1 billion in revenue in 2015, and the company was once valued at $9 billion, according to estimates.
Earlier this year, a federal grand jury indicted Holmes and former Theranos Chief Operating Officer (COO), Ramesh Balwani, on nine counts of wire fraud and two counts of conspiracy to commit wire fraud for distributing blood tests to consumers that contained fabricated results.
The trial in the case of United States v. Holmes, et al. began on August 31, 2021 and is expected to last at least 13 weeks. If convicted, Holmes faces a maximum sentence of 20 years in federal prison as well as millions of dollars in restitution and fines.
Some have attributed Theranos’ credibility to Holmes’ personal connections and ability to recruit the support of influential people, such as Henry Kissinger, George Shultz, Jim Mattis, and Betsy DeVos. Others have attributed it to the company’s financial success. During this time, Holmes was involved in a secret romantic relationship with Balwani, who Holmes claims “dominated” her to the point where she was unable to make her own decisions, an accusation that Balwani vigorously denies. Following the demise of Theranos, she entered into a marriage with hotel heir Billy Evans.
Holmes’s life and career, as well as the rise and fall of her company, and the subsequent fallout, are the subject of a book by Wall Street Journal reporter John Carreyrou, Bad Blood: Secrets and Lies in a Silicon Valley Startup, and an HBO documentary feature film, The Inventor: Out for Blood in Silicon Valley, both of which are available on Netflix.