Elizabeth Holmes: How Theranos founder went from billionaire darling of Silicon Valley to the brink of prison
“Don’t worry about the future, we’re in good hands.”
So said former US president Bill Clinton in 2015, as he introduced Elizabeth Holmes to an adoring New York crowd.
It seemed an uncontroversial statement at the time, as he hailed the achievements of a woman who had become America’s youngest self-made female billionaire after taking Silicon Valley by storm.
A hub for the world’s biggest tech companies, the only thing more synonymous with this infamous stretch of northern California than scientific breakthroughs and innovative gadgets were the rich white men who were invariably behind them – turtleneck jumpers and smart trouser-sneaker combos in tow.
Bill Clinton and Elizabeth Holmes at the Clinton Global Initiative’s 2015 meeting in New York
Holmes – a high school computer whizz turned Harvard dropout – was a bona fide gatecrasher, her stunning rise to the cover of Forbes magazine powered by her founding health technology firm Theranos and its rapid ascent to a peak valuation of $9bn. Look back on what it was promising to deliver, and it’s easy to see why.
Revolutionary blood tests were at the heart of its pitch, ones which could be performed at phenomenal speed with merely a small drop required – and no needles.
Holmes’s catchphrase became “change the world”, such were her assertions that the equipment her company had developed could test for dozens of diseases in one fell swoop.
She insisted it would change healthcare in the US, not just by speeding up and streamlining trips to the doctor, but by eventually rendering such visits obsolete by selling the gizmos in stores.
It took more than a decade for such claims to be exposed as the stuff of science-fiction, but Holmes’s shameless willingness to talk the talk regardless helped her become one of the darlings of Silicon Valley, raising hundreds of millions from investors and venture capitalists.
As Theranos grew, her public image was crafted to perfection to make her the perfect face of one of America’s most exciting companies, famously adopting the aforementioned turtlenecks from her idol Steve Jobs, the late Apple founder, and speaking in a strikingly deep voice which added extra gravitas to her every word.
Fame isn’t for everyone, but for Holmes it seemed elementary.
Nothing, it seemed, could go wrong. Until it did. Big time.
Theranos reached a value of $9bn
How the lie was exposed
Holmes’s empire began to unravel upon the publication of a bombshell expose by The Wall Street Journal, which reported that Theranos’s technology was profoundly flawed.
The devices used to collect people’s blood, which the firm dubbed “nanotainers”, were said to be so far off the mark that Theranos had in fact been using other companies’ equipment to carry out blood tests in its laboratories.
The most distressing piece of the Journal’s report was that the company’s ex-chief scientist, Briton Ian Gibbons, had tried to take his own life after telling his wife the tech did not work. He died shortly after from liver failure.
The stories emerged just a month after Holmes had shared the stage with Bill Clinton.
Silicon Valley is home to some of the biggest names in tech
As described by Sky’s Ian King when Theranos went bust in 2018, three years after the Journal’s report, key to the company keeping the wool fixed firmly over the public’s eyes until then had been an almost cult-like culture among its executives and staff, and one of extreme secrecy.
Neither are unique to Silicon Valley – some of the big tech personalties who have emerged over the years remain an odd focus of worship in some corners of the internet – but rarely have they combined to such destructive effect.
The journalist who broke the story, John Carreyrou, has since written a book on the scandal called Bad Blood, which stands to be turned into a feature film. There’s perhaps a cruel irony that it’s being produced by Apple, the company whose late co-founder was a source of such inspiration for Holmes.
Her rise and fall also inspired a hit podcast series called The Dropout, and a subsequent Hulu series of the same name starring Amanda Seyfried.
The show presents Holmes as a brave, smart, single-minded young woman determined to succeed, and she is initially easy to root for. As Apple designer Ana Arriola tells Holmes in a scene when she attempts to recruit her following the launch of the first iPhone: “Honestly, it’s just really exciting to me that you’re a young female CEO, instead of a cocky little boy in a sweatshirt.”
But Holmes’s goal of becoming a wealthy star of the biotech scene quickly overcomes all other instincts – including a willingness to tell the truth.
It’s a trait that left some staff feeling deeply uneasy, not just Gibbons and Arriola, who describes her time at Theranos on her LinkedIn page as “altruism through corrupt unethical science-fiction”.
Amanda Seyfried as Holmes in The Dropout: Pic Disney+
How a life unravelled
Carreyrou’s revelations, which Holmes has admitted trying to silence, sparked investigations by medical and financial regulators in the US. In a development which would once have been unthinkable, the now 34-year-old was facing criminal charges in 2018.
She and the president of Theranos, ex-lover Romesh Balwani (who she has since accused of sexual assault), were accused of engaging “in a multi-million-dollar scheme to defraud investors, a separate scheme to defraud doctors and patients”, and each faced two counts of conspiracy to commit wire fraud and nine counts of wire fraud.
Former Theranos president Ramesh Balwani
Among those defrauded investors were the likes of Rupert Murdoch and the American pharmacy giant Walgreens, while similarly big names had been attracted to Theranos’s board of directors.
Among them were former secretaries of state Henry Kissinger and George Shultz, and an ex-director of the US Centers for Disease Control.
All of them had been hoodwinked by Holmes, who had founded Theranos aged just 18 and quickly learned how to tell her backers exactly what they wanted – and she needed them – to hear.
As Eric Jackson, a startup founder and author of The PayPal Wars, put it to Sky News: “There is almost endemic to the system a need to, I don’t want to say exaggerate, but to tell a narrative that’s compelling to investors. At a certain point hype does have to be in line with credibility, if not you’re in an instance of good old-fashioned fraud.”
Whether it was a matter of delusion, falling victim to the treacherous “fake it ’til you make it” culture that permeates American startups, or something more sinister, Holmes maintained during her trial that she initially believed her company’s purportedly revolutionary blood tests were real.
“I wanted to convey the impact the company could make for people and for health care,” she told the court of her meetings with investors.
To prosecutors, such assertions were the consequence of a woman who was “out of time and out of money”.
Having launched her company by repurposing family funds meant for her Harvard degree, taking it mainstream meant doing whatever it took to attract her big time investors and venture capitalists.
The once-enamoured former US secretary of defence Jim Mattis, who joined the company board, told the trial: “There just came a point when I didn’t know what to believe about Theranos any more.”
Holmes arrives for a hearing in San Jose in 2019
‘She chose lies when we needed truth’
Holmes’s sentencing on Friday comes after she was convicted of fraud earlier this year, her years-long scam having failed to move the jury as it had done her backers.
After a case which gripped the world, just as her rise to fame had done, US federal prosecutors want the judge to jail her for 15 years, a term considered appropriate for “one of the most substantial white collar offences Silicon Valley or any other district has seen”.
Balwani has been left waiting until next month for his sentencing, having also been convicted of multiple fraud counts during a separate trial.
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In a 46-page brief last week, assistant US attorney Robert S Leach wrote of Holmes: “She repeatedly chose lies, hype, and the prospect of billions of dollars over patient safety and fair dealing with investors.
“Elizabeth Holmes’ crimes were not failing, they were lying – lying in the most serious context, where everyone needed her to tell the truth.”
A counter document from Holmes’s attorneys, totalling 82 pages, insisted her reputation had been permanently and unfairly destroyed, given it had turned her into a “caricature to be mocked and vilified”.
They are appealing for a sentence of no more than 18 months.
More than 130 friends, family, former investors and employees have also submitted letters to the judge, Edward Davila of San Jose, California, to appeal for leniency.
Senator Cory Booker used his to hail Holmes, still only 38, as someone who “can, despite mistakes, make the world a better place”.
Whether that’s true or not, she won’t be able to from behind bars.
Pope Leo will lead his first holy mass as pontiff this morning – after already paying a surprise visit to see staff at his former residence.
Robert Prevost’s life changed forever on Thursday when he went from being one of 252 cardinals to the first-ever American pope.
His was chosen after just four rounds of voting in the Sistine Chapel – a conclave that lasted just 25 hours.
New pope unveiled to the world – as it happened
The 69-year-old Chicago-born cardinal was not seen as a frontrunner but quickly secured the required two-thirds majority.
There was jubilation in St Peter’s Square when white smoke emerged and about an hour later the Pope’s identity was revealed when he stepped onto the balcony.
The choice of Leo is the first time the name has been used since Leo XII – the pope from 1878 to 1903.
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Moment new pope emerges on balcony
People celebrated the new pope’s announcement in St Peter’s Square. Pic: Reuters
Sky News understands one of the first things the Pope did was greet staff at his former residence, Sant’Uffizio Palace, just outside the Vatican.
All eyes will now be on his first mass, when he and other cardinals return to the Sistine Chapel around 10am.
Pope Leo’s first words as leader of 1.4 billion Catholics on Thursday evening were “may peace be with all of you”.
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Conclave: How the last 48 hours unfolded
His balcony speech also paid tribute to his predecessor – who only made him cardinal two years ago and brought him from Peru for a senior Vatican role.
“The pope that blessed Rome gave his blessing to the whole world on that Easter morning. So let us follow up that blessing,” said Leo.
He also called for a “church that builds bridges” and is “able to receive everybody that needs our charity, our presence, dialogue and love”.
Read more:
Who is the new Pope?
What does the Pope’s name mean?
The Pope vs his predecessors
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Trump comments on first US pope
There has long been a taboo against a US pope – given the influence the country already has – but Leo was promoted as a “compromise candidate” ahead of conclave.
His many years as a missionary in Peru are also believed to have given him more universal appeal, especially among the cardinals from Central and South America.
President Donald Trump told reporters having an American in the role for the first time was a “great honour” – and Time magazine has already revealed its cover celebrating the moment.
However, the Pope appears to have taken issue with some of the Trump administration’s views and policies.
His X account posted a link in February to an article criticising comments by the vice president entitled: “JD Vance is wrong: Jesus doesn’t ask us to rank our love for others”.
In April, when President Trump met El Salvador’s leader about using a notorious prison for suspected US gang members, he shared another post stating: “Do you not see the suffering? Is your conscience not disturbed? How can you stay quiet?”
‘Pope played Wordle before conclave’
With many now waiting on the Pope’s next public comments, his brothers have revealed their surprise when they saw him emerge in the white robes on TV.
Eldest brother Louis Prevost told Sky’s US partner NBC News it was “mindblowing”.
“When the cardinal came out and started to read his name, as soon as he went “raw” I knew he was gonna say ‘Roberto’ – and he did – and I just freaked out.”
Mr Prevost added: “We’ve kind of known he was special, and we used to tease him about being pope when he was six years old and stuff.”
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The Pope’s other brother said he had been in contact with him before conclave and joked about watching the hit film of the same name.
“I said did you watch the movie Conclave so you know how to behave,” John Prevost told NBC News.
“And he had just finished watching the movie so knew how to behave; so it’s that kind of stuff because I wanted to take his mind off of it – because this is now an awesome responsibility.”
He also revealed the brothers had played online puzzles Wordle and Words with Friends to take the Pope’s mind off things in the run-up to the election.
The Vatican has announced the first ever US leader of the Catholic Church – Robert Prevost, who will be known as Pope Leo XIV.
The 69-year-old cardinal was born in Chicago and spent many years as a missionary in Peru.
Follow live updates: New pope elected
He was made a cardinal by Pope Francis in 2023 and appointed head of the dicastery for bishops, a powerful position responsible for selecting new bishops.
Significantly, he presided over one of Francis’s most revolutionary reforms when he added three women to the voting bloc which decides on the bishop nominations sent to the Pope.
Bishop Robert Prevost leading a celebration in Peru last August. Pic: AP
As cardinal, he said little on key issues of the church, but some of his positions are known.
He is reportedly very close to Francis’s vision regarding the environment, outreach to the poor and migrants. He said in 2024 “the bishop is not supposed to be a little prince sitting in his kingdom”.
He also supported Pope Francis’s stance on allowing divorced and remarried Catholics to receive Holy Communion.
However, he only showed mild support for Francis allowing priests to bless same-sex couples.
Cardinal Prevost being appointed by Francis in 2023. Pic: EPA/Shutterstock
Pope Leo has years of experience in leadership roles within the church.
He was twice elected to the top position of the Augustinian religious order and Francis clearly had an eye on his progress – moving him from the Augustinian leadership back to Peru in 2014, where he served as administrator and later archbishop of Chiclayo.
He acquired Peruvian citizenship in 2015 and remained in Chiclayo until 2023, when Francis brought him to Rome.
Pope Leo’s years in Peru made him a more universal candidate for the papacy. Pic: AP
While there has long been a taboo against a US pope – given the geopolitical power the US already wields – Leo was being promoted as a “compromise candidate” ahead of the conclave.
The amount of time he has spent in Peru also allowed him to be seen as a more universal candidate.
The world learned a new pope had been chosen at around 6.08pm local time (5.08pm UK time) on Thursday as white smoke suddenly emerged from the chimney of the Sistine Chapel.
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First US pope chosen
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New pope elected by conclave
The 133 cardinals sequestered in the chapel picked the new leader of the Catholic Church on the second day of the conclave.
As the smoke appeared, cheers went up in St Peter’s Square, where thousands of people had gathered in the hope of witnessing history.
Just over an hour later, the Pope was introduced on the central balcony of St Peter’s Basilica as a crowd of an estimated 50,000 people looked on.
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Pope Leo’s first address
Delivering an address from the balcony, Pope Leo – speaking in Italian – told the crowds: “Peace be with you all.”
He then thanked his predecessor and repeated Francis’s call for a church that is engaged with the modern world and “always looking for peace, charity and being close to people, especially those who are suffering”.
Newly-elected Pope Leo XIV appears on the balcony of St Peter’s Basilica at the Vatican. Pic: Reuters
“Together we must try to find out how to be a church that builds bridges, establishes dialogue and is open to receiving everybody,” he said.
Speaking in Spanish, he added: “I would particularly like to say hello to my compatriots from Peru.
“It was a great pleasure for me to work in Peru.”
There is a long list of demands in the new pope’s in-tray, ranging from the position of women in the church to the ongoing fight against sexual abuse and restoring papal finances.
People both inside the Catholic Church and around the world will be watching how the new pontiff deals with them.
US Cardinal Robert Francis Prevost was elected as the new pope on Thursday after just two days of conclave.
The 69-year-old, who becomes the first American pope, will take the name Leo XIV.
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‘Evil will not prevail, we are all in the hands of God’, the new American Pope told the crowd.
On Friday, Pope Leo will lead his first holy mass as pontiff after already paying a surprise visit to see staff at his former residence.
Here, Sky News Europe correspondent Siobhan Robbins takes an in-depth look at the challenges facing the new pontiff.
Sexual abuse
Many Catholic insiders credit Pope Francis with going further than any of his predecessors to address sexual abuse.
He gathered bishops together for a conference on the issue in 2019 and that led to a change that allows cooperating with civil courts if needed during abuse cases.
But it didn’t go as far as forcing the disclosure of all information gathered in relation to child abuse.
Any abuse allegations must now be referred to church leaders, but reformers stopped short of decreeing that such cases should also be automatically referred to the police.
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Clerical abuse victim says church still has ‘so much to do’
While many abuse victims agree they saw progress under Pope Francis, who spent a lot of time listening to their accounts, they say reforms didn’t go far enough.
The next pope will be under pressure to take strong action on the issue.
Newly-elected Pope Leo XIV appears on the balcony of St Peter’s Basilica at the Vatican. Pic: Reuters
Women
Pope Francis also did more to promote women in the Vatican than any other pontiff.
Two years ago, he allowed women to vote in a significant meeting of bishops.
While he was clear he wanted women to have more opportunities, he resisted the idea that they needed to be part of the church hierarchy and didn’t change the rules on women being ordained.
A woman kneels at St. Peter’s Square, on the first day of the conclave to elect the new pope. Pic: Reuters
His successor will need to decide if they push this agenda forward or rein it back in.
It’s a pressing concern as women do a huge amount of the work in schools and hospitals, but many are frustrated about being treated as second-class citizens. 10,000 nuns a year have left in the decade from 2012 to 2022, according to Vatican figures.
Inclusion
“Who am I to judge?” Pope Francis famously said when asked about a gay monsignor in 2013.
His supporters say he sought to make the church more open, including allowing blessings for same sex couples but while critics argue he didn’t go far enough, some conservatives were outraged.
A gay couple kiss at a Catholic protest against the legalisation of gay marriage in Mexico. File pic: Reuters
African bishops collectively rejected blessings for same sex couples, saying “it would cause confusion and would be in direct contradiction to the cultural ethos of African communities”.
How welcome LGBTQ+ people feel in the church will depend partly on decisions made by the pontiff.
Conversely, the Pope must also bring together disparate groups within the Catholic faith.
Many are demanding a leader who can unite the various factions and bring stability in an increasingly unstable world.
The global south
While the Catholic church is losing members in its traditional base of Europe, it’s growing rapidly in the global south.
The area has become the new centre of gravity for Catholicism with huge followings in countries like Brazil, Mexico and the Philippines.
Pope Francis tried to expand representation by appointing more cardinals from different areas of the world, and the new Pope will be expected to continue this.
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Behind the scenes at the conclave
Finance
The Vatican is facing a serious financial crisis.
The budget deficit has tripled since Pope Francis’s election and the pension fund has a shortfall of up to €2bn (£1.7bn).
These money worries, which were compounded by COVID-19 and long-standing bureaucratic challenges, represent a major concern for the next pope.
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