3 ms·

Serious question: Even if Theranos goes down in flames, won't she walk away from this with a fortune? Maybe not quite the fortune she thought, but still many m

by flormmm 11y ago

Serious question: Even if Theranos goes down in flames, won't she walk away from this with a fortune? Maybe not quite the fortune she thought, but still many millions?

tyre 11y ago
Quite likely. In later rounds, founders are often strongly encouraged to take money off the table by selling equity. This isn't shady, it's so the founding team stops worrying about money and focuses full-time on the company. Ramen-profitable is good in the short term, but time becomes increasingly valuable as a company grows.
- kolbe 11y ago
  This is true for many companies, but in the case of gross negligence[1], simply the action of her cashing out could be securities fraud and/or grounds for clawing back the money she took out. [1] which I'm not accusing Holmes of, but it's not out of the question, either.
- kzhahou 11y ago
  It's common and its bullshit. If founders take from funding then so should employees. They should be able to stop worrying about money as much as the founders.
- bsder 11y ago
  > This isn't shady, it's so the founding team stops worrying about money and focuses full-time on the company. Uh, no. It's so that the founders won't sell the company at a mere 4-5x rather than then 20-100x that the VC's want. If it was genuinely about the company, they'd let all the initial people take some stock off the table. Instead they only allow the people who could sell the company to take stock off the table. Big difference.
rdlecler1 11y ago
I'd assume that at this point she sold off at least a few million dollars in shares.
w1ntermute 11y ago
She came from an old money family, so she will inherit millions regardless of whether she made (or will make) anything off of Theranos.
- randycupertino 11y ago
  I've seen her driving around town, she has some insane sports car that looks like a rocket ship. I couldn't even recognize what it was (Ferrari? Lamborghini?) it was so unusual looking.
  - petra 11y ago
    Really ? in the media(i think the new yorker, pretty respectable) she was portrayed with the life style of a monk.
return0 11y ago
It's quite possible that some clients will find grounds to sue if something serious is proven.

by flormmm 11y ago

Serious question: Even if Theranos goes down in flames, won't she walk away from this with a fortune? Maybe not quite the fortune she thought, but still many millions?

tyre 11y ago

Quite likely. In later rounds, founders are often strongly encouraged to take money off the table by selling equity. This isn't shady, it's so the founding team stops worrying about money and focuses full-time on the company. Ramen-profitable is good in the short term, but time becomes increasingly valuable as a company grows.

kolbe 11y ago
This is true for many companies, but in the case of gross negligence[1], simply the action of her cashing out could be securities fraud and/or grounds for clawing back the money she took out. [1] which I'm not accusing Holmes of, but it's not out of the question, either.
kzhahou 11y ago
It's common and its bullshit. If founders take from funding then so should employees. They should be able to stop worrying about money as much as the founders.
bsder 11y ago
> This isn't shady, it's so the founding team stops worrying about money and focuses full-time on the company. Uh, no. It's so that the founders won't sell the company at a mere 4-5x rather than then 20-100x that the VC's want. If it was genuinely about the company, they'd let all the initial people take some stock off the table. Instead they only allow the people who could sell the company to take stock off the table. Big difference.

rdlecler1 11y ago

I'd assume that at this point she sold off at least a few million dollars in shares.

w1ntermute 11y ago

She came from an old money family, so she will inherit millions regardless of whether she made (or will make) anything off of Theranos.

randycupertino 11y ago
I've seen her driving around town, she has some insane sports car that looks like a rocket ship. I couldn't even recognize what it was (Ferrari? Lamborghini?) it was so unusual looking.
- petra 11y ago
  Really ? in the media(i think the new yorker, pretty respectable) she was portrayed with the life style of a monk.

return0 11y ago

It's quite possible that some clients will find grounds to sue if something serious is proven.