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Was it a Silicon Valley thing though? BoD and investors were all from outside the Valley.
by slac 5y ago
Was it a Silicon Valley thing though? BoD and investors were all from outside the Valley.
- whymauri 5y agoReading Bad Blood, the grift was definitely aided by that Stanford branding and the associated connections.
- hamburgerwah 5y agoYes, it was a silicon valley thing. Their first and chief investment was from Tim Draper who all but invented silicon valley venture capital. Were it not for that investment Theranos would not have happened at all.
- diebeforei485 5y agoTim Draper invested $500K ($0.5M), of the ~$275M Theranos raised in total. And he wasn't on the board. I think it's reasonable to invest seed capital in unproven but interesting ideas, and it's unfair to blame seed investors if those ideas don't pan out.
- Leparamour 5y ago500K doesn't seem much for VC.
- nthngtshr 5y agoI don't know the whole story so maybe there is something more to your argument, but on face value this doesn't sound like a strong argument. Early stage investing is high volume, low involvement, low due diligence kind of thing. I would be a lot more embarrassed if I invested 100M into a 10 years old company that turned out to be a fraud vs 500K into a brand new pre-product team.