In the recent past, Holmes; founder of Theranos; managed to top the list of the richest self-made women in the world with a net worth of $4.5 billion. This was solely based on the fact that she owns 50% of the company shares and her shares are not traded in any market. In the year 2014, after a listing in the stock markets, private investors purchased the availed shares which implied that organization’s performance was at $9 billion.
However a closer review into the reality on the ground reveals a significantly lower value of her net worth. According to the latest Forbes report, the estimate of the company’s valuation would be around $800 million and in order for Elizabeth Holmes to be rewarded she would have to wait until all her private investors have had their returns and profits. Surprisingly, after Forbes publications, Hormes had no comment. Forbes decision to lower MS Holmes worth is based on the following;
- Secrecy; Other than the company’s $9billion valuation information availed in 2014, little to nothing is known about Theranos. A while back, Elizabeth Holmes promised to replace traditional blood testing methods with machines that could perform a wide range of tests on a single drop of blood. We are not disputing her efforts on the matter but she has not been able to provide statistics to back up the functionality of her systems.
- Theranos has fallen short in terms of delivery; for months on end, Elizabeth Holmes has been promising to provide proof of the effectiveness of her technology but none has been seen so far. The only one she provided to the FBA was a test on herpes promising to provide more. However FBA found loopholes in her systems and put restrictions on her finger-based blood tests.
- Target market may be delusional; Robert Nelson breaks the ice on this issue by asserting that displacing low-cost lab test may be an impossible task for Theranos. Therefore the kind of market she thinks they have may not be in existence after all.