Now that the smoke has settled a bit, I’m wondering how the Theranos scandal affected all startups, not just biotech and medical ones. Do you think startups as a whole have dialed back their descriptions and promises of what their technologies are capable of? Was a habit of over-promising and exaggeration Silicon Valley’s dirty secret that was blown wide open?
Theranos was a failure of celebrity. The founder is smart, had some great sponsors, attracted a blue chip Board and investors. The rest of us do not get to breath that rarefied air of celebrity. In general, there is no blow back. I am in San Jose. Theranos is never a discussion any more than WebVan was 15 years ago. I am sure diligence has been more rigorous, but it always has been.
I don't think this is an issue unique to start-ups. Over-promising and under-delivering (or outright fraud) is a recipe for failure. Caveat emptor applies to funders.