I don't think that Theranos had a lot of traditional VC funding. Tim Draper was the first investor and apparently neighbors with Elizabeth Holmes and pretty muc

I don't think that Theranos had a lot of traditional VC funding. Tim Draper was the first investor and apparently neighbors with Elizabeth Holmes and pretty much the only VC I saw on the list. But he was the first investor so there may have been nothing to do due diligence on at that point. But then she got money from the DeVos family, the Waltons, Rupert Murdoch, Larry Ellison, Oppenheimers, and several other huge names. Proof that lots of money does not necessarily make one a "sophisticated" investor. But maybe the $50m-$100m that each of those investors put in wasn't enough to be worth their time to do any due diligence.