VC's fund pharma and medical device companies all the time. However, from what I understand from friends in the business, there is usually a very standard playb

VC's fund pharma and medical device companies all the time. However, from what I understand from friends in the business, there is usually a very standard playbook that hinges around the FDA approval process -- your valuation is your lifetime patent value for the drug or device, de-rated by the success rate of other ventures at your stage in the process. Theranos seems to have broken that mold.