From Grace To Grass: Forbes Revises Elizabeth Holmes $4.5 Billion Net Worth
It must be a pretty great feeling to be the number one, richest, self-made woman according to financial giant Forbes. However, to then have your colossal $4.5 billion net worth disputed by aforementioned financial giant, is a bit of a fall from grace, and exactly what happened to Elizabeth Holmes recently.
Holmes has also been placed, by Forbes, as the sixth richest entrepreneur in America under 40 in 2015, and number 72 on the 2015 list of power women. Titles that may be found to be incorrect. Holmes is the founder of Theranos, a health-technology company and as her half of the shares in the company are not traded at all, her net worth was estimated at an impressive $4.5 billion. However, some further research, it seems that this number is highly inflated. Theranos itself looks as though it is worth around $800 million; however Holmes’ reward would not be eligible until all investors have received their share of the profits.
As very little is known for certain about the company, nor the validity of their claims to revolutionise the testing of blood, using a single drop, the monetary figures are also questionable. As great as the initial premise was, without proof that the company has achieved what they set out to, or are at least on their way to doing so, it starts to lose any worth, monetary or otherwise.
There are currently a huge amount of federal investigations around the Theranos company, due to multiple claims that their products do not work as expected, and new information suggests that their revenue is less than $100 million. Factor in the newly built laboratories, the research, staff and investors and it looks as though Holmes is going to be very out of pocket once everything else is covered. In fact, Forbes has revised their estimated net worth of Holmes to zero – a pretty big fall from the top!
Not only is it looking like this is not quite working as advertised, but that the market demand is just not in existence at all either. Add to this the secrecy around any systems and/or progress, and it’s no wonder that Forbes has lowered their estimation for Elizabeth, to nothing at all! Ouch. So where will it go from here? Either Theranos needs to start showing some results and passing the investigations, or it is very clear that Elizabeth Holmes and Theranos as a whole just are not worth what we all thought. A disappointment for the health industry, and of course for Holmes herself.