WhereIsAtlas · Biotech

Theranos

The $9B biotech startup that tested almost nothing

Defunct — Dissolved in 2018 after its blood-testing technology was proven fraudulent.

Theranos raised over $700 million on the promise that its proprietary 'Edison' machines could run hundreds of diagnostic tests from a finger-prick of blood. At its 2014 peak it was privately valued at $9 billion and operated dozens of wellness centers inside Walgreens stores.

The Wall Street Journal's 2015 reporting showed the machines produced unreliable results and that the vast majority of patient samples were diluted and run on third-party analyzers. The Centers for Medicare & Medicaid Services revoked the company's lab certificate, Walgreens terminated the partnership, and regulators voided two years of results.

Theranos dissolved in September 2018. Its founder Elizabeth Holmes and former president Sunny Balwani were convicted of fraud in separate trials — a case that reshaped how Silicon Valley, regulators and investors talk about 'fake it till you make it'.

Timeline

  1. 2003 — Founded as Real-Time Cures: Holmes registers the company at 19, later renaming it Theranos — 'therapy' plus 'diagnosis'.
  2. 2010 — Walgreens deal: Theranos wellness centers open inside Walgreens pharmacies across the Southwest.
  3. 2014 — $9B valuation: A funding round prices the company at $9 billion on claims it cannot publicly substantiate.
  4. Oct 2015 — WSJ investigation: Reporting exposes that Edison ran only a fraction of promised tests — and unreliably.
  5. 2016 — Results voided: CMS revokes the lab certificate; Walgreens ends the partnership and sues.
  6. Sep 2018 — Company dissolved: Theranos ceases operations; remaining assets are auctioned to pay creditors.
  7. 2022–23 — Convictions and sentences: Holmes receives ~11 years; Balwani nearly 13, closing the criminal chapter.

Quick facts

Founded
2003, Palo Alto, CA
Founder
Elizabeth Holmes
Peak valuation
≈ $9B (2014)
Capital raised
>$700M
Dissolved
Sep 2018

Sources

  1. Wikipedia: Theranos — Wikipedia (2026-01-10)
  2. How Theranos misled patients — The Wall Street Journal (2026-01-08)
  3. Theranos to dissolve — Reuters (2026-01-08)

Related: elizabeth holmes · wework