Elizabeth Holmes Net Worth 2022 (Forbes) – How Did She Go Bankrupt?

Elizabeth Holmes Net Worth

Elizabeth Holmes has an estimated net worth of $0. She is the founder and former CEO of Theranos, a health technology company that marketed a new mode of blood testing. After allegations against the company’s technology and business practices, Theranos’ valuation collapsed, and Holmes and a former COO were indicted on federal fraud charges in June 2018. She earned the majority of her income from Theranos.

Elizabeth Holmes was the founder and former CEO of Theranos, a health technology company based in Silicon Valley that marketed a less expensive, non-invasive blood testing technology. Following the company’s valuation of more than $9 billion, a series of reports emerged claiming that Holmes’ technology was flawed and that many of the 7.5 million tests it ran were inaccurate. Holmes and ex-Theranos COO Ramesh “Sunny” Balwani were indicted on 11 federal charges in June 2018, including wire fraud and conspiracy to commit wire fraud.

To calculate the net worth of Elizabeth Holmes, subtract all her liabilities from her total assets. Investments, savings, cash deposits, and any equity she has in a house, car, or other similar asset are included in the total assets. All debts, such as loans and personal debt, are included in total liabilities.

Here’s the breakdown of her net worth:

Name: Elizabeth Holmes
Net Worth: $0
Monthly Salary: $0
Annual Income: $0
Source of Wealth: Entrepreneur

Early Life and Education

Holmes was born in Washington, D.C. on February 3, 1984, to Noel, a former Capitol Hill committee staffer, and Christian, who worked for a number of government agencies, including the United States Agency for International Development (USAID). When Holmes was a child, his family relocated from Washington, D.C. to Houston, Texas.

Holmes began her entrepreneurial career as a teenager, when her interest in computer programming led her to launch a company selling coding translation software to Chinese universities. She also began studying Mandarin Chinese at a young age, allowing her to take college-level classes while still in high school. In 2002, she enrolled at Stanford University in California, where she studied chemical engineering and worked alongside Channing Robertson, a dean who would go on to become one of Theranos’ first board members.

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Founding of Theranos

Holmes got the idea for her company while working on research and testing for Severe Acute Respiratory Syndrome, or SARS, during a summer internship at the Genome Institute of Singapore in 2002. Her initial concept, for which she was granted a U.S. patent in 2003, was for a drug delivery system that would administer drugs, test their effectiveness, and then adjust the drug’s dosage as needed — all in a single small patch.

At the age of 19, Holmes left Stanford and founded a company called “Real-Time Cures,” using her college tuition money as seed money. Over the next several years, Holmes shifted her focus to creating a new type of blood testing, claiming it was based on her own fear of needles. The company was named Theranos, a combination of the words “therapy” and “diagnosis.” Tim Draper, the father of a childhood friend and founder of Draper Fisher Jurvetson, was an early investor.

Theranos quickly claimed to have developed a number of proprietary methods. One method eliminated the need for traditional needles by using a fingerstick to collect tiny amounts of blood into a small tube called a “nanotainer.” Another was a laboratory machine that could run dozens of tests on the same, minute amount of blood, testing for everything from diabetes to cancer to heart disease. In addition, Theranos advocated for new legislation in several states to allow the tests to be administered without a doctor’s note.

Both technologies would have revolutionized the blood testing industry, which is worth $75 billion per year. Theranos provided these blood tests at a significantly lower cost than traditional testing labs and hospitals; whereas some conventional tests could cost hundreds of dollars, Theranos provided them for less than $5 and with faster results.

Although the company refused to reveal its methods and technology (even to investors), claiming that their proprietary nature made them vulnerable to would-be competitors, it signed several lucrative deals, including one with the Walgreens Company, which saw Theranos labs installed in nearly 50 of the chain’s locations, with plans for thousands more. The company also claimed to be working with the United States. Although those claims were later disproven, they were made by the Department of Defense and pharmaceutical behemoths such as Pfizer and GlaxoSmithKline. A $350 million deal with Safeway fell through after allegations were made against the company.

Media Profile and “Fake Voice” Accusations

Holmes rose to prominence in the media, appearing in dozens of newspaper and magazine profiles. Holmes, dressed entirely in black, including a mock turtleneck, was frequently compared to visionary Apple tech guru Steve Jobs, a comparison Holmes actively sought. Holmes worked seven days a week and claimed never to have taken a vacation, traits she emphasized to her employees. Her deep-pitched voice, one of her most notable features, came under scrutiny, with several press accounts claiming that she purposefully lowered it, possibly to gain respect in the male-dominated world of Silicon Valley.

Relationship with Sunny Balwani

As a teenager, Holmes met Ramesh “Sunny” Balwani while studying in China. Balwani, a software engineer with no prior experience in health care or medicine, was appointed president and chief operating officer of Theranos, in charge of the company’s day-to-day operations. Holmes and Balwani had a romantic relationship, which they kept hidden from investors and most employees.

In 2016, Balwani was fired from Theranos, and his relationship with Holmes ended. Both were named in the March 2018 Securities and Exchange Commission case (in which Theranos was accused of “massive fraud”) and the June 2018 federal indictment on wiretapping charges. Balwani has denied the charges, and, unlike Holmes, he has not reached a settlement with the SEC (Holmes paid a $500,000 SEC fine but did not admit guilt).

Unraveling of Theranos

The alleged fraud came to light in the fall of 2015, when a series of articles in the Wall Street Journal and other media outlets revealed serious problems with the company. Among the shocking revelations: that many of its blood samples were tested on standard diagnostic equipment (purchased from another company), rather than the so-called “Edison” machine Holmes claimed to have perfected; that the small percentage of tests performed on the Edison machines produced sometimes highly inaccurate results; and that the company had vastly overestimated its annual revenue forecasts in order to attract investors.

Several former employees also came forward, exposing the company’s tight circle of secrecy. They claimed that Holmes and Balwani were aware of the flaws in the technologies, and that the Edison machines and tests were not ready for widespread public use, but that they forced employees to falsify testing data and run phony demonstrations of the machines for potential investors. Theranos attorneys also threatened several employees.

Investigations and Legal Charges Against Theranos

The FDA and the Centers for Medicare & Medicaid Services (CMS), which regulates the healthcare industry, both launched investigations. The FDA declared Theranos’ “nanotainer” vial a “uncleared medical device” in October 2015, and the CMS shut down Theranos’ Newark, California, laboratory in January 2016, citing a “immediate risk to patient health and safety.” Theranos had closed its “Wellness Centers” by the end of the year. Investors lost millions of dollars, and several companies, including Walgreens, are suing for restitution.

In early 2018, Theranos reached an agreement with the CMS, paying a $35,000 fine and refunding more than $4.5 million to Arizona testing customers. The company was barred from working in the blood-testing industry for two years as part of the settlement. The SEC settlement, for which Holmes paid a $500,000 fine, also barred her from holding a position of leadership at any publicly traded company for ten years.

Holmes continued to deny the allegations, but on June 15, 2018, the US Attorney’s Office charged her and Sunny Balwani with 11 federal counts, including nine counts of wire fraud and two counts of conspiracy to commit wire fraud. Each charge carries a maximum sentence of 20 years in prison, a $250,000 fine, and restitution.

On September 5, 2018, it was announced that Theranos would be dissolved after attempting to pay creditors with the company’s remaining cash.

“We have run out of time,” CEO David Taylor wrote in an email to shareholders.

A federal judge overseeing the criminal case against Holmes and Balwani partially dismissed one count of conspiracy to commit wire fraud and three counts of wire fraud in February 2020, citing the government’s failure to allege that the duo had a specific intent to defraud doctors and patients who were fully insured.

Media Portrayals

The 2018 best-seller Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou, who broke the story for the Wall Street Journal, provided an in-depth look at Holmes and her company’s deceptions. Even before the book was published, the film rights were sold, with The Big Short’s Adam McKay attached to direct and Jennifer Lawrence attached to star as Holmes.

The Inventor: Out for Blood in Silicon Valley, directed by Oscar winner Alex Gibney, premiered on HBO in March 2019.

Favorite Elizabeth Holmes Quotes

Fundamentally, the answers to our challenges in healthcare relies in engaging and empowering the individual.

Elizabeth Holmes

 

The worst possible thing in the world is to have someone who doesn’t believe in you.

Elizabeth Holmes

 

Every time you create something new, there should be questions. And to me, that’s a sign that you’ve actually done something that is transformative.

Elizabeth Holmes

 

I work all the time, and I’m basically in the office from the time I wake up and then working until I go to sleep every day.

Elizabeth Holmes

 

What I really want out of life is to discover something new: something mankind didn’t know was possible to do.

Elizabeth Holmes

 

I definitely am afraid of needles. It’s the only thing that actually scares me.

Elizabeth Holmes

 

The right to protect the health and well-being of every person, of those we love, is a basic human right.

Elizabeth Holmes

 

What matters is how well we do in trying to make people’s lives better. That’s why I’m doing this. That’s why I work the way that I work. And that’s why I love what I’m doing so much.

Elizabeth Holmes

 

At a relatively early age, I began to believe that building a business was perhaps the greatest opportunity for making an impact, because it’s a tool for making a change in the world.

Elizabeth Holmes

 

We’ve created these little tiny tubes, which we call the ‘nanotainers,’ which are designed to replace the big, traditional tubes that come from your arm, and instead allow for all the testing to be done from a tiny drop from a finger.

Elizabeth Holmes

View our larger collection of the best Elizabeth Holmes quotes.

Further Reading

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How To Become Rich Like Elizabeth Holmes?

Elizabeth Holmes did not become rich by luck. To become as rich as Elizabeth Holmes, you have to work smart.

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