Only in #Silicon_Valley could Theranos founder Elizabeth Holmes lose $4.5 billion she never had to begin with — Quartz
▻http://qz.com/707143/only-in-silicon-valley-could-elizabeth-holmes-lose-4-5-billion-she-never-had-to-
A related problem is the way startups are valued. Theranos wasn’t valued at $9 billion because it was bringing in massive amounts of revenue or held vast assets. Rather, venture capitalists valued the biotech company so highly because it had the potential to be worth that, or more. It held $9 billion of expectations. Obviously, this is not the same thing as cash. When an investigation concluded Theranos’ inventions were unlikely to ever become profitable—or even workable—all of those expectations evaporated, and the valuation collapsed accordingly.