The Secret Culprit in the Theranos Mess Is the Tech Press
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The discussion about the suspiciously positive press strongly resembles uBeam (http://techcrunch.com/2015/04/26/kill-the-cord/): the wunderkind founder, the game changing product. But no practical proof of concept and a weak defense when others point out it violates the laws of physics. (http://techcrunch.com/2015/11/07/wireless-power-charger/)
But the sound levels they talk about are insane. Their numbers imply a few kilowatts of power going in. You do not want to be in a kilowatt sonar beam. Maybe you can't hear it, but that energy has to come out as heat,
Investigative tech journalism is a very rare beast, and always seems to come from major media outlets taking an interest in tech, not tech media outlets taking an interest in actually investigating something.
Look, fraud and deception have been around for much longer than political correctness.
The female angle is definitely a cherry on top, but it's not the substance of the shit sundae served up by Theranos.
That is false. Almost every profile of Theranos doubles as a profile of Elizabeth, complete with photo shoots of her in her signature black turtleneck (after all, there is no actual technology to be shown) and the statement that she's the youngest self-made female billionaire.
So while they indiscriminately endorse any women, the women who merit endorsement more will inevitably be disenfranchised more.
http://publiceditor.blogs.nytimes.com/2015/10/29/conflict-of...
> it was my mistake in not asking her if there were any potential conflicts. This was an oversight on my part. I say this not as an excuse, but she is, separately from her husband, a billionaire (making her through marriage a billionaire twice over) and for that reason I think I failed to consider any monetary conflict in her case.
She assumes that rich people have no 'monetary conflict' [of interest]? What?
Regardless of whether she depends on her husband for money, or if she was independently rich, there can still be conflict of interest.
http://recode.net/2015/10/29/nyt-public-editor-blasts-arrill...
Interesting how Theranos tried to threaten the Wall Street Journal. Threatening journalists, even through legalistic means, sounds like a particularly dumb move: if nothing else it proved they were on the right track.
What is this assertion based on? News organizations large and small carry insurance to protect them from lawsuits like this.
Will the general counsel grill the newsroom leadership to make sure they can back up what's being printed and that they're not violating the law? Absolutely. But that doesn't mean they will be cowed by threats of nuisance lawsuits.
And that's just the general case. The WSJ isn't an ordinary paper; they can charge $400 a year because their readers believe they can get a business advantage. The moment readers think that anybody with a few lawyers can get a negative story killed is the moment they stop relying on the paper.
And if somebody did end up taking them to the mat, they're owned by Rupert Murdoch, a famously combative media boss and son of a reporter whose net worth is north of $12 billion. The guy started Fox News, which might as well be called the Angry Shouty Channel. I cannot think of a worse person in the world to attempt to intimidate with a lawsuit.
There was a time when newspapers took higher moral stands, but now it's more about P&L decisions.
[0] http://money.cnn.com/2016/05/02/media/hulk-hogan-gawker-seco...
I find it bizarre to bio Calacanis as a "blogger and founder of Weblogs" in the context of this quote.
It makes him sound like an informed third party offering his two cents.
When in fact Calacanis is less a "blogger" than a major force / champion of startup news via his "this week in startups" podcast, founder of inside.com which reports on startups, and runs Launch Festival which is exactly the kind of major conference he is pointing the finger at.
And the author of the piece Nick Bilton has even appeared on Jason's start-up show http://muckrack.com/link/5Gn7/this-week-in-startups so can't be that he's unaware that the outdated biline doesn't' make sense.
If I want someone to give me the lowdown on what's really going on, then I'll turn to the NYT first, not TechCrunch. Surely I'm not alone in this?
Maybe some will rise to the challenge.
I wish the media would ask how much of the market share the company will have and if they plan on expanding beyond Walgreens. Also there were rumors that small amounts of blood easily coagulate. If that is true then do they plan on using a blood thinner or fractionating the blood in a centrifuge and then testing it? How much uncertainty do they have in each of the tests they are performing on one drop of blood? Do they have enough capital to narrow the uncertainty? Are they having problems with the FDA approving their testing? What will happen to all the medical lab techs? Will they be let go or is blood testing only a small part of what lab techs do? Instead we get articles on gender, turtle necks and start up culture...
IMO we live in a world where there are too few successful female entrepreneurs and at the same time people are very eager to see that world change. So as a result, if there is any inkling of a successful female entrepreneur, that story gets gobbled up by the press ad nauseam.
A couple of problems created by this that stick out in my mind are: there's a lot unfair pressure for said female entrepreneur to succeed. And a lot of female entrepreneurs who would otherwise be ignored, suddenly find themselves as celebrity icons despite having any real success deserving of such praise, which creates a disastrous over confidence and the "personality" being placed before the business.
Elizabeth Holes isn't the only one. Marissa Mayer was hailed a hero before crashing and burning. Less know is Sophia Amoruso, who despite only have a moderately popular online clothing shop (Nasty Gal), has written two books about her success and has an upcoming Netflix series about how "awesome" she is. And the press complete ignores the fact that Amoruso's company has gone through multiple lay-off rounds, has atrocious Glassdoor reviews, a declining relevancy, is being sued for firing pregnant women, and by all accounts is struggling to stay in business. All of this is true about Amoruso, but she still gets a Netflix series about how "wildly successful" she is...
implies that nothing happened here but the media overhyped someone. While clearly true, and I have no doubt having a young female entrepreneur was a good angle, that's not the story.
If anyone promised what Theranos promised it would be a big story. Could have been a 73 year old Doctor. No big needle draws? Tons of tests right at the doctors office? No more slow giant labs? A big breakthrough like that is NEWS.
Having a female founder was just one more bullet on the 'cool story' checklist. The hype would have been there without the female founder angle the OP focused on.
Saying the media is 100% to blame also absolves Theranos, its board, and its founder. Even when being overhyped they shouldn't have lied. They shouldn't have hidden things. They could have acted MUCH better.
They could have not sold their services while knowing they didn't work.
Absolute best case: they were wrong about how good their machines. But due to hype they kept trying and thought 'we can fix this before were caught'. And it just snowballed and snowballed.
I'll also point out the end of the comment tends to imply that women run companies into the ground or aren't qualified to succeed since all anecdotes are of failures.
For my anecdote: I've heard companies tend to elect women to be CEOs when there is basically nothing left to lose and saving the company is nearly impossible. Because by that point they figure it doesn't matter they don't have the 'best', some other proven CEO that happens to usually be a guy.
Did she? Or was she handed the reins to the Titanic and then vilified when it still sank?
Could anyone have saved Yahoo? Would they have taken that job?
Marissa Mayer got lucky at Google and will never get lucky again. She will never do anything important in tech again.
Could anyone save Yahoo? I don't know, but there are certainly people that could have done a better job than Marissa Mayer.
The funniest thing is all these 90 year old crinkly men being conned into investing. What could they possibly know about hi tech products ... they barely remember how to go to the toilet, or if they are even alive. It reminds me of old Cold War diplomats rapidly losing their mental faculties after a couple of smiles from an Eastern Bloc Anastasia. A pretty woman in a room of powerful men can rapidly turn them into fools.
https://en.wikipedia.org/wiki/Belle_Gibson
She was paraded as a brave and celebrated App developer who overcame serious health issues by the Australian press.
and then it came crashing down.
What is different is that most of the future frauds will be explicitly financial in nature, whereas Theranos was a scientific fraud. Material misrepresentation of revenues and costs structure, overinflated usage stats - that sort of thing.
But it isn't like the tech press coverage drew in the suckers - it wasn't a public company. Of course, I haven't heard anything about institutional investors. Maybe the public ended up getting screwed in the end anyway.
1. The original Theranos scientist who started the project - Ian Gibbons - committed suicide after saying that "nothing was working" in 2013. After Gibbons wife spoke to the press, Theranos threatened to sue her.
2. The idea of a needle pricking the end of my finger, just to get one drop (not enough for analysis anyway) is horrible. Far better to get it from an area with less nerve endings which will get more blood - like the usual place in the crook of the arm. The whole idea was stupid to begin with.
Lab-on-a-chip technology has the potential to be the science fiction equivalent of a medical tricorder. Every doctor could have one and give instant patient feedback. Yet the expectation for this start up is to get it perfect from the beginning. They may lose all their VC's money but I bet that DARPA would still bankroll them.
She'll be stained forever by this, her name and Theranos are practically interchangeable at this point.
Gibbons was a top biochemist, hired away from academia with the copious combination of sunshine and VC cash that has long been Holmes's specialty. He staked a decade of his life and reputation on making the impossible real, because that's what she hired him to do. By his own words, he failed in that task. Then he committed suicide.
I'm not saying I would have done the same, in the same position. Then again, if I were the type to feel such a failure so keenly, I'd be more likely to be a top biochemist in the first place. Both parties were adults. The point of this thread is that Holmes ought to be treated as such.
White Americans kill themselves more often than Black Americans, but Native Americans more than whites again. Some very rich groups (e.g. Hollywood stars and their kids) kill themselves often, but also some extremely poor groups (Indian subsistence farmers - possibly in connection to microcredit).
If I'm correct, the sexism of lower expectations may be a contributing factor why women kill themselves less than men, and the racism of low expectations has a similar effect on blacks.
Native Americans, on the other hand, may be more or less as socially disadvantaged as blacks in the US (correct me if I am wrong), but grow up with romanticised notions of themselves from majority culture and (First-)nationalist idealization from their own, creating an image it's especially hard to live up to from social and economic deprivation.
Celebrities have a lot of economic and social opportunity, but also everyone knows they have it, and everyone's eyes are on them. Expectations are accordingly high.
And for the poor subsistence farmers, there's nothing like a debt letter to say "you should be doing this, why aren't you doing this?". Before, they might have starved, but at least it wouldn't be their fault. Now there's a formal legal document saying that it basically is, and the entire village is involved in pushing that lesson in (if I understand microcredit practices correctly).
You call suicide an occasionally rational reaction. I'm not sure if I agree, but it does remind me of a bug I had in a connect four program many years ago. It could look ahead four-five moves or so, but it had a poor evaluation function, so it would often find itself in situations where the opponent could force a win. When it did, it played randomly. I had forgotten to penalize an early loss over a late loss, so every move seemed equally bad to it. Maybe for some suicidal people, similarly all outcomes seem 100% unacceptable, and so suicide just becomes one random equally bad option out of many.