In 2014, blood-testing startup Theranos and its founder, Elizabeth Holmes, were on top of the world.
Back then, Theranos was a revolutionary idea thought up by a woman hailed as a genius who styled herself as a female Steve Jobs. Holmes was the world’s youngest female self-made billionaire, and Theranos was one of Silicon Valley’s unicorn startups, valued at an estimated $9 billion.
But then it all came crashing down.
The shortcomings and inaccuracies of Theranos’s technology were exposed, along with the role Holmes played in covering it all up. Holmes was ousted as CEO and charged with “massive fraud,” and the company was forced to close its labs and testing centers, ultimately shuttering operations altogether.
This is how Holmes went from precocious child, to ambitious Stanford dropout, to an embattled startup founder convicted of fraud:
Elizabeth Holmes was born on February 3, 1984 in Washington, D.C. Her mom, Noel, was a Congressional committee staffer, and her dad, Christian Holmes, worked for Enron before moving to government agencies like USAID.
When she was 7, Holmes tried to invent her own time machine, filling up an entire notebook with detailed engineering drawings. At the age of 9, Holmes told relatives she wanted to be a billionaire when she grew up. Her relatives described her as saying it with the “utmost seriousness and determination.”
Holmes had an “intense competitive streak” from a young age. She often played Monopoly with her younger brother and cousin, and she would insist on playing until the end, collecting the houses and hotels until she won. If Holmes was losing, she would often storm off. More than once, she ran directly through a screen on the door.
It was during high school that Holmes developed her work ethic, often staying up late to study. She quickly became a straight-A student, and even started her own business: she sold C++ compilers, a type of software that translates computer code, to Chinese schools.
Inspired by her great-great-grandfather Christian Holmes, a surgeon, Holmes decided she wanted to go into medicine. But she discovered early on that she was terrified of needles. Later, she said this influenced her to start Theranos.
As a sophomore, Holmes went to one of her professors, Channing Robertson, and said: “Let’s start a company.” With his blessing, she founded Real-Time Cures, later changing the company’s name to Theranos. Thanks to a typo, early employees’ paychecks actually said “Real-Time Curses.”
Holmes soon filed a patent application for a “medical device for analyte monitoring and drug delivery,” a wearable device that would administer medication, monitor patients’ blood, and adjust the dosage as needed.
Theranos’s business model was based around the idea that it could run blood tests, using proprietary technology that required only a finger pinprick and a small amount of blood. Holmes said the tests would be able to detect medical conditions like cancer and high cholesterol.
Holmes started raising money for Theranos from prominent investors like Oracle founder Larry Ellison and Tim Draper, the father of a childhood friend and the founder of prominent VC firm Draper Fisher Jurvetson. Theranos raised more than $700 million, and Draper has continued to defend Holmes.
That obsession with secrecy extended to every aspect of Theranos. For the first decade Holmes spent building her company, Theranos operated in stealth mode. She even took three former Theranos employees to court, claiming they had misused Theranos trade secrets.
Holmes’ attitude toward secrecy and running a company was borrowed from a Silicon Valley hero of hers: former Apple CEO Steve Jobs. Holmes started dressing in black turtlenecks like Jobs, decorated her office with his favorite furniture, and like Jobs, never took vacations.
Even Holmes’s uncharacteristically deep voice may have been part of a carefully crafted image intended to help her fit in in the male-dominated business world. In ABC’s podcast on Holmes called “The Dropout,” former Theranos employees said the CEO sometimes “fell out of character,” particularly after drinking, and would speak in a higher voice.
Holmes was a demanding boss, and wanted her employees to work as hard as she did. She had her assistants track when employees arrived and left each day. To encourage people to work longer hours, she started having dinner catered to the office around 8 p.m. each night.
More behind-the-scenes footage of what life was like at Theranos was revealed in leaked videos obtained by the team behind the HBO documentary “The Inventor: Out for Blood in Silicon Valley.” The more than 100 hours of footage showed Holmes walking around the office, scenes from company parties, speeches from Holmes and Balwani, and Holmes dancing to “U Can’t Touch This” by MC Hammer.
Shortly after Holmes dropped out of Stanford at age 19, she began dating Theranos president and COO Sunny Balwani, who was 20 years her senior. The two met during Holmes’ third year in Stanford’s summer Mandarin program, the summer before she went to college. She was bullied by some of the other students, and Balwani had come to her aid.
Balwani became Holmes’ No. 2 at Theranos despite having little experience. He was said to be a bully, and often tracked his employees’ whereabouts. Holmes and Balwani eventually broke up in spring 2016 when Holmes pushed him out of the company.
In 2008, the Theranos board decided to remove Holmes as CEO in favor of someone more experienced. But over the course of a two-hour meeting, Holmes convinced them to let her stay in charge of her company.
As Theranos started to rake in millions of funding, Holmes became the subject of media attention and acclaim in the tech world. She graced the covers of Fortune and Forbes, gave a TED Talk, and spoke on panels with Bill Clinton and Alibaba’s Jack Ma.
Theranos quickly began securing outside partnerships. Capital Blue Cross and Cleveland Clinic signed on to offer Theranos tests to their patients, and Walgreens made a deal to open Theranos testing centers in their stores. Theranos also formed a secret partnership with Safeway worth $350 million.
In 2011, Holmes hired her younger brother, Christian, to work at Theranos, although he didn’t have a medical or science background. Christian Holmes spent his early days at Theranos reading about sports online and recruiting his Duke University fraternity brothers to join the company. People dubbed Holmes and his crew the “Frat Pack” and “Therabros.”
Holmes was obsessed with security at Theranos. She asked anyone who visited the company’s headquarters to sign non-disclosure agreements before being allowed in the building, and had security guards escort visitors everywhere — even to the bathroom.
Holmes hired bodyguards to drive her around in a black Audi sedan. Her nickname was “Eagle One.” The windows in her office had bulletproof glass.
Around the same time, questions were being raised about Theranos’ technology. Ian Gibbons — chief scientist at Theranos and one of the company’s first hires — warned Holmes that the tests weren’t ready for the public to take, and that there were inaccuracies in the technology. Outside scientists began voicing their concerns about Theranos, too.
By October 2015, Wall Street Journal reporter John Carreyrou published his investigation into Theranos’s struggles with its technology. Carreyrou’s reporting sparked the beginning of the company’s downward spiral.
Carreyrou found that Theranos’ blood-testing machine, named Edison, couldn’t give accurate results, so Theranos was running its samples through the same machines used by traditional blood-testing companies.
Holmes appeared on CNBC’s “Mad Money” shortly after the WSJ published its story to defend herself and Theranos. “This is what happens when you work to change things, and first they think you’re crazy, then they fight you, and then all of a sudden you change the world,” Holmes said.
In March 2018, Theranos, Holmes, and Balwani were charged with “massive fraud” by the SEC. Holmes agreed to give up financial and voting control of the company, pay a $500,000 fine, and return 18.9 million shares of Theranos stock. She also isn’t allowed to be the director or officer of a publicly traded company for 10 years.
Despite the charges, Holmes was allowed to stay on as CEO of Theranos, since it’s a private company. The company had been hanging on by a thread, and Holmes wrote to investors asking for more money to save Theranos. “In light of where we are, this is no easy ask,” Holmes wrote.
In Theranos’ final days, Holmes reportedly got a Siberian husky puppy named Balto that she brought into the office. However, the dog wasn’t potty trained, and would go to the bathroom inside the company’s office and during meetings.
In June 2018, Theranos announced that Holmes was stepping down as CEO. On the same day, the Department of Justice announced that a federal grand jury had charged Holmes, along with Balwani, with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.
Theranos sent an email to shareholders in September 2018 announcing that the company was shutting down. Theranos reportedly said it planned to spend the next few months repaying creditors with its remaining resources.
Around the time Theranos’ time was coming to an end, Holmes made her first public appearance alongside William “Billy” Evans, a 27-year-old heir to a hospitality property management company in California. The two reportedly first met in 2017, and were seen together in 2018 at Burning Man, the art festival in the Nevada desert.
Holmes is said to wear Evans’ MIT “signet ring” on a chain around her neck, and the couple reportedly posts photos “professing their love for each other” on a private Instagram account. Evans’ parents are reportedly “flabbergasted” at their son’s decision to marry Holmes.
It’s unclear where Holmes and Evans currently reside, but they were previously living in a $5,000-a-month apartment in San Francisco until April 2019. The apartment was located just a few blocks from one of the city’s top tourist attractions, the famously crooked block of Lombard Street.
It was later reported that Holmes and Evans got engaged in early 2019, then married in June in a secretive wedding ceremony. Former Theranos employees were reportedly not invited to the wedding, according to Vanity Fair.
Besides the criminal case, Holmes was also involved in a number of civil lawsuits, including one in Arizona brought by former Theranos patients over inaccurate blood tests. The lawyers representing her in the Arizona case said in late 2019 they hadn’t been paid over a year and asked to be removed from Holmes’ legal team.
Holmes’ lawyers in the federal case had tried to get the government’s entire case thrown out. In February 2020, Holmes caught a break after some of the charges against her were dropped when a judge ruled that some patients didn’t suffer financial loss.
Amid the coronavirus outbreak, Holmes’ lawyers asked the judge in April 2020 to deem the case “essential” so the defense team could defy lockdown orders and continue to travel and meet face-to-face. The judge said he was “taken aback” by the defense’s pleas to violate lockdown.
It soon become clear that the pandemic — and the health risks associated with assembling a trial — would make the July trial date unrealistic. Through hearings held on Zoom, the presiding judge initially pushed the trial back to October 2020 and later postponed it further to March 2021.
In March 2021, Holmes requested another delay to the trial because she was pregnant. She asked to push back the trial to August 31, and her request was granted. Holmes reportedly gave birth to the child in July.
The trial kicked off in September. In opening statements, prosecutors argued that, “Out of time and out of money, Elizabeth Holmes decided to lie.” Meanwhile, the defense argued that although Theranos ultimately crumbled, “Failure is not a crime. Trying your hardest and coming up short is not a crime.”
Holmes testified that Balwani controlled what she ate and how her schedule looked, told her she had to “become a new Elizabeth” to succeed in business, and forced her to have sex with him when she didn’t want to because “he would say that he wanted me to know he still loved me.”
Holmes also admitted that she added some pharmaceutical companies’ logos to Theranos’ reports without authorization. Investors previously said they took some reassurance in those reports because, based on the logos, they thought major pharmaceutical companies had validated Theranos’ technology. Holmes said she added the logos to convey that work was done in partnership with those companies, but in hindsight she wishes she had “done it differently.”
Holmes also acknowledged on the stand that she hid Theranos’ use of modified commercial devices from investors. She said she did this because company counsel told her that alterations the company made to the machines were trade secrets and needed to be protected as such.
Jurors deliberated for a total of seven days over the next few weeks before telling the court on Monday that they were deadlocked on three of the 11 charges against Holmes. The judge read off some jury instructions to the group in court before instructing them to go back and deliberate further.
Hours later, the jury returned a mixed verdict for Holmes, finding her guilty on one count of conspiracy to defraud investors and three counts of wire fraud. They found her not guilty on four other counts and failed to reach a verdict on the remaining three counts. The counts Holmes was found guilty of were all related to investments; she wasn’t convicted on any of the charges involving patients who received inaccurate test results.
Holmes now faces the possibility of decades in prison. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay victims restitution. Holmes was not taken into custody following the verdict; prosecutors say they want a secure bond for her. A date for a sentencing hearing has not yet been set.