
Theranos’ Scandal Exposes the Problem with Tech’s Hype Cycle - mudil
http://www.wired.com/2015/10/theranos-scandal-exposes-the-problem-with-techs-hype-cycle/
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mudil
When I read those two articles in WSJ, I wasn't surprised at all. When I saw
hype around Theranos a year or two ago, I thought it might be a scam. Common:
a 30 year old, comes up with some hitherto unknown technology in a field that
has millions of people and companies working hard to implement even small
advances. And all the hype surrounding the company is based on her persona,
really.

(I remember reading in Freakonomics or in Good to Great that statistically any
time you have a company whose main effort is promote a charismatic CEO: watch
out, this company is not that great.)

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mudil
And, just look at the articles. Theronos uses Siemens technology, while
maintaining a facade of a revolutionary company.

I just don't know how these VCs invest. Again and again due diligence is
missing. The company is worth billions. And it seems like these investments
were made based on personalities and friendships.

I remember when Color had $41M investment right off the bet. And no one could
understand what this application is designed to do. And no one ever used it.

[http://techcrunch.com/2011/03/23/color-looks-to-reinvent-
soc...](http://techcrunch.com/2011/03/23/color-looks-to-reinvent-social-
interaction-with-its-mobile-photo-app-and-41-million-in-funding/)

