Elizabeth Holmes goes down in flames

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Elizabeth Holmes goes down in flames. Last year, Forbes estimated her net worth at $4.5 billion. Yesterday they revised that downward to… nothing.

J.P. Travis: Born and raised in Grand Rapids, Michigan, 1976 graduate of University of Michigan, father, grandfather, husband, founder and CEO of Travelyn Publishing (http://www.travelynpublishing.com/), and passionate anti-government believer in individual liberty.

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  • I doubt she's broke. It's tough to have assets worth billions and not accidentally have a hundred million or so fall into other investments/assets. No doubt the stock price was also boosted by the publicity of her as a Hillaryesque woman of power.

    • When you read the linked article, you learn how she went to being worth nothing: her $4.5 billion net worth came from her 50% ownership of the company, but her 50% is common stock. The other 50% is preferred stock owned by venture capitalists and they get their investment back before she gets a dime. If/when the company goes under, they are unlikely to recoup their investment so her stock is unlikely to be worth anything. Now, that being said, she probably pulled in a nice salary, too, but I'm guessing she probably borrowed to buy a mansion and some nice cars and maybe a boat, based on her net worth, and NONE of those lenders are going to be happy when they learn her collateral is worth nothing. So my guess is bankruptcy in her near future.

      • Not to mention if she does have any cash or accounts the bankruptcy trustee will probably grab it.

    • This story reminds me of Global Warming science. Apparently all the science behind her company's new blood tests was bogus, but people hear what they want to hear. The smart venture capitalists, the front line investors, realized the science was crap, but the second tier venture capitalists fell for her spiel hook, line, and sinker. Now the company has admitted the tests didn't work.

      • That is crazy to me because I remember reading about her. Thinking that she is copying the Apple dude with her wardrobe and then thinking well she is very smart and this could be good for healthcare, because tests are expensive so I hope she gets it all sorted so I can have access to it. I was thinking all of that and I even told my Mom that there was a woman who was around my age that was a genius who may revolutionize healthcare, etc... I remember that! Amazing that it was all BS. We are not progressing I feel and we should.