Elizabeth Holmes: Has the Theranos Scandal Changed Silicon Valley?

I think the article covers it pretty well, or at least what the problems are.

What is very worrying is someone accepting they cannot verify the technology because "IP" but still handing over enormous money.

You would think there were enough spin doctors around that people would be really wary. You might bet on "people not products" in early stages but you still want at least a PoC or some half-baked product to prove it mostly works and just needs improving.