20/20′: The Rise and Con of Elizabeth Holmes

The 'The Dropout' podcast episode titled ''20/20': The Rise and Con of Elizabeth Holmes' chronicles the dramatic ascent and fall of Elizabeth Holmes, the enigmatic founder of Theranos. The episode begins with the announcement of a Hulu series based on Holmes's story, hinting at the widespread fascination with her. Holmes, who dropped out of Stanford at 19, convinced the world that she had revolutionized blood testing with a device that could perform hundreds of tests with just a drop of blood. Her company, Theranos, attracted massive investment, partnerships with major pharmacies like Walgreens, and a star-studded board of directors, including former Secretary of State George Schultz.

Holmes's ambition and persona, often compared to Steve Jobs, captivated the media and investors. Her deep voice, black turtlenecks, and intense gaze became her trademarks. However, beneath the surface, Theranos's technology was failing to deliver on its promises. Employees and a Stanford professor voiced early concerns about the feasibility of Holmes's vision, but she persisted, seeking mentorship from influential figures and drawing comparisons to tech giants who had also left college to pursue their ventures.

As Theranos grew, so did the secrecy and paranoia within the company. Employees were discouraged from communicating, and the Edison machine, Theranos's flagship product, was shrouded in mystery. Despite mounting internal issues, Holmes continued to project confidence and success to the outside world. Theranos's partnership with Walgreens went public, and the company's valuation soared. Still, the reality was that Theranos was using conventional machines for most tests and failing to produce accurate results, endangering patients' health.

The episode reaches a climax with the Wall Street Journal's exposé by John Carreyrou, which triggered a cascade of legal and financial troubles for Theranos. The company's deception unraveled, leading to Holmes's indictment on federal wire fraud charges. The trial captivated the public, with Holmes eventually taking the stand to defend herself, blaming others for the company's failures, and revealing allegations of abuse by her business partner, Sunny Balwani. The jury's verdict found Holmes guilty on four counts of fraud, marking a significant fall from grace for the former Silicon Valley icon.