Tech Superwoman CEO’s Net Worth Drops $4.5B to Zero!
June 2, 2016
In an astounding fall from corporate and political grace, the net worth of celebrated tech “unicorn” Theranos CEO Elizabeth Holmes has fallen from $4.5 billion to zero.
The calculation was made by Forbes, which put Holmes at the top of its “Richest Self-Made Women in America” list last year. That was, of course, before the Wall Street Journal’s investigative reporting revealed huge problems at her company Theranos, not least of which was the fact that its flagship product didn’t actually work.
“Our estimate of Holmes’ wealth is based entirely on her 50% stake in Theranos, the blood-testing company she founded in 2003 with plans of revolutionizing the diagnostic test market. Theranos shares are not traded on any stock market; private investors purchased stakes in 2014 at a price that implied a $9 billion valuation for the company,”Forbes reports.
That valuation came down quite a bit after Theranos was “hit with allegations that its tests are inaccurate and is being investigated by an alphabet soup of federal agencies,” and it was revealed that the superheated startup’s annual revenues are now less than $100 million.