Theranos debacle a warning to bullish culture of Silicon Valley

Start-ups under pressure to deliver the next wonder technology can tread a fine line.

One allegation against Theranos founder Elizabeth Holmes is that she faked demos to win over investors.
One allegation against Theranos founder Elizabeth Holmes is that she faked demos to win over investors.

Silicon Valley has been trying to run a mile from the mess that is Theranos. But the debacle at the blood-testing start-up - which the US Securities and Exchange Commission said this week was a "massive fraud" - will not be as easy to shrug off as the powers-that-be in the tech world would like.

It also holds a particular warning at a time when tech start-ups are extending their reach into industries from healthcare to finance and transportation.

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A version of this article appeared in the print edition of The Straits Times on March 17, 2018, with the headline 'Theranos debacle a warning to bullish culture of Silicon Valley'. Subscribe