Prominent Investors Took Chance On Theranos — And Now They’re Paying For It
It is unusual for a startup to attract so much funding from big name investors such as Rupert Murdoch.
The Wall Street Journal:
Big Names Take Hit On Theranos
Theranos Inc. received much of its funding from high-profile private investors who weren’t part of the ecosystem that typically backs startups and could see their stakes wiped out by the blood-testing company’s regulatory and technological troubles, people familiar with the matter said. (Weaver, Carreyrou and Siconolfi, 11/28)
San Francisco Business Times:
Robertson Stephens Cofounder Robert Colman Sues Theranos Over Investment Gone Bad
Robert Colman, a cofounder of legendary investment bank Robertson Stephens & Co., is suing troubled blood testing company Theranos Inc. and its founder, Elizabeth Holmes. In a potential class-action suit filed Monday in U.S. District Court in San Jose, Colman and fellow Theranos investor Hilary Taubman-Dye say the Palo Alto-based company, CEO Holmes and former President Sunny Balwani made false and misleading claims about the company's technology while luring hundreds of millions of dollars into the company. The lawsuit claims that Colman was solicited in September 2013 by Donald A. Lucas of Menlo Park's Lucas Venture Group to invest in Theranos at the request of the company and Holmes. (Leuty, 11/28)