1. Myth-Making

The 'Myth-Making' episode of 'The Dropout' podcast opens with the testimony of Elizabeth Holmes, the founder of Theranos, during a 2017 investigation into the company's potential fraud. Once celebrated as the youngest self-made female billionaire, Holmes's fall from grace is juxtaposed against her earlier days when she was likened to tech visionaries such as Steve Jobs and Bill Gates. The podcast reveals how Holmes's company, valued at nearly $10 billion, plummeted to worthlessness after being charged with massive fraud.

Holmes's background is explored, highlighting her upbringing in a family that valued success and legacy, which may have fueled her ambition to become a billionaire. Her academic prowess and early interest in entrepreneurship are noted, including her desire to revolutionize healthcare with a device that could run multiple tests using just a drop of blood. The narrative details how Holmes dropped out of Stanford to pursue her venture, Theranos, drawing in high-profile board members and investors despite the skepticism of some faculty members over the feasibility of her technology.

The episode delves into the internal culture of Theranos, marked by secrecy and a high turnover of employees. Testimonies from former employees and board members, such as Avi Tevanian, paint a picture of a company where dissent was not tolerated, and those who questioned Holmes's methods or the technology's readiness were quickly dismissed. The design team, many of whom were poached from Apple, were tasked with creating a product for technology that had not been realized, leading to ethical concerns, especially when the technology was prematurely tested on terminal cancer patients.

Despite mounting challenges and departures of key personnel, Holmes's narrative and the company's valuation continued to grow. The episode sets the stage for the unraveling of Theranos, leaving listeners questioning how the company managed to sustain its facade for so long.