
Second Theranos Lab Failed U.S. Inspection - w1ntermute
http://www.wsj.com/articles/second-theranos-lab-failed-u-s-inspection-1484708428
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xja
It's really a shame that VCs don't seem to have figured out how to do DD on
science based startups.

The same is probably somewhat true in tech generally, but VCs in this area
don't seem capable of doing the DD. They invest based on personality,
connection or business background.

That's all great, but really what these early stage companies need is a CEO
with a strong scientific background and focus.

In my experience, those CEOs often don't come across as strong enough to
investors who are generally more comfortable investing in tech, which is
easier for them to understand.

So my hope is that high profile failures make VCs wake up, and assess
scientific startups differently. However I think it's more likely that they'll
just avoid them all together.

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gumby
> It's really a shame that VCs don't seem to have figured out how to do DD on
> science based startups.

Actually life science VCs do, which is why none of them invested. Theranos'
investors were tech investors.

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yohoho22
Unpaywalled summary: [http://www.marketwatch.com/story/theranos-could-face-
new-san...](http://www.marketwatch.com/story/theranos-could-face-new-
sanctions-after-failures-at-second-lab-2017-01-17)

