American Entrepreneur, Elizabeth Holmes was the founder and ex-CEO of Theranos, blood-test Company. She ranked no 1 for America’s richest self-made woman in the year 2015. Let us have a look at the net worth of Elizabeth Holmes as of 2018.
Early Life & Biography:
Elizabeth Holmes was born on 3rd February 1984 in Washington DC, the USA. As an employee of Government agencies like USAID, Elizabeth’s father, Christian Rasmus Holmes IV, was posted in Africa, China, and the USA. Elizabeth’s mother, Noel Anne Daoust, worked for the Congressional Committee. Elizabeth’s great-grandfather, Christian Rasmus Holmes was a Danish physician. He married Bettie, the daughter of Charles Louis Fleischmann, founder of Fleischmann’s Yeast.
Elizabeth studied at St. John’s School, Houston. During high school, Elizabeth programmed and sold C++ compilers to Chinese Universities. Elizabeth was a President’s Scholar at Stanford University (2011). She studied chemical engineering and got the stipend to work in the lab with Ph.D. students and Channing Robertson, Dean at the Engineering school.
After freshman year, Elizabeth worked in a lab at Genome Institute of Singapore. There, she traditionally collected blood samples and tested for the severe acute respiratory syndrome (SARS). In 2003, she first patented on the wearable-drug delivery patch. By March 2004, she quit engineering school at Stanford.
Career, Awards & Nominations:
In 2003, Elizabeth Holmes founded Theranos Inc., Company for consumers’ blood test. By 2014, she was one of the 400 richest Americans in 2014 as per FORBES list. The same year, she was the world’s youngest self-made woman billionaire. As of 2017, according to FORBES, Elizabeth Holmes ranked at the top position on the list of America’s Richest Self-Made Women.
Net Worth & Earnings:
Elizabeth’s net worth was estimated to be $4.5 billion by Forbes. But now Forbes has revised and lowered her net worth to $0. As per FORBES, Elizabeth Holmes’ net worth is nothing (2018). She raised her valuation to over $800 million but, there is no evidence. FORBES reviewed her net worth and lowered to nothing based on the following three reasons.
Secretive: Little is known about $9 billion valuations of Theranos. Elizabeth had promised to replace the traditional blood collection of syringe and vial with the usage of machines. These would perform dozens of tests from one drop of blood from the finger. Theranos never showed evidence.
Theranos failed to publish any paper as of April 2018. Initially, she had given a paper to the Food and Drug Administration (FDA), on testing Herpes virus. She had hoped 120 more approvals but, the FDA made restrictions such that Theranos had to discontinue.
Theranos failed to meet the target. Experts doubted Theranos blood-test idea. According to them, it was not as reliable as Laboratory Corp. of America (capitalization: $13 billion) or Quest Diagnostics DGX (capitalization: $11 billion).
Forbes estimated Elizabeth Holmes’ net worth based on her 50% stake in Theranos. Presently, the stock market has stopped quoting its shares. In 2014, private investors bought all the stakes at $9 billion evaluated for Theranos facing allegations over inaccurate tests. Federal agencies are investigating Theranos such that annual revenues of Theranos are less than $100 million.
After consulting a dozen analysts, venture capitalists, and industry experts, FORBES concluded Theranos is $800 million and not $9 billion. Theranos got credit for intellectual property and raised $724 million as venture capital research firm according to the VC Experts. Since the valuation of Elizabeth’s stake is low, her net worth amounts to nothing. Other Theranos investors own preferred shares, so they are paid back long before Elizabeth Holmes who owns common stock.
In 2018, Elizabeth Holmes stepped down as ex-CEO of Theranos. Its a story of riches to rags as Elizabeth is said to have nothing at present.