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Bad Blood: Secrets and Lies in a Silicon Valley Startup Paperback – January 28, 2020

4.7 4.7 out of 5 stars 40,139 ratings

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NATIONAL BESTSELLER • The gripping story of Elizabeth Holmes and Theranosone of the biggest corporate frauds in history—a tale of ambition and hubris set amid the bold promises of Silicon Valley, rigorously reported by the prize-winning journalist. With a new Afterword covering her trial and sentencing, bringing the story to a close.

“Chilling ... Reads like a thriller ... Carreyrou tells [the Theranos story] virtually to perfection.” —
The New York Times Book Review

In 2014, Theranos founder and CEO Elizabeth Holmes was widely seen as the next Steve Jobs: a brilliant Stanford dropout whose startup “unicorn” promised to revolutionize the medical industry with its breakthrough device, which performed the whole range of laboratory tests from a single drop of blood. Backed by investors such as Larry Ellison and Tim Draper, Theranos sold shares in a fundraising round that valued the company at more than $9 billion, putting Holmes’s worth at an estimated $4.5 billion. There was just one problem: The technology didn’t work. Erroneous results put patients in danger, leading to misdiagnoses and unnecessary treatments. All the while, Holmes and her partner, Sunny Balwani, worked to silence anyone who voiced misgivings—from journalists to their own employees.
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Editorial Reviews

Review

"Bad Blood is the real be-all end-all of Theranos information…. Bad Blood is wild, and more happens on one page than in many other entire books." —Margaret Lyons, The New York Times

"You will not want to put this riveting, masterfully reported book down. No matter how bad you think the Theranos story was, you'll learn that the reality was actually far worse."
—Bethany McLean, bestselling coauthor of The Smartest Guys in the Room and All the Devils Are Here

"Chilling... Carreyrou tells [this story] virtually to perfection… Reads like a West Coast version of
All the President's Men."
—Roger Lowenstein, The New York Times Book Review

"The definitive account of Theranos’s downfall, detailing its motley crew of executives, legal knife fights, dramatic PR stunts, and skullduggery... Offers a lot for foreign-policy wonks... While
Bad Blood is worth reading for its own merits—it’s a stunning feat of journalism that reads like a thriller—it also says a lot about Washington’s facile relationship with Silicon Valley. Most D.C. power brokers know next to nothing about science or technology but increasingly view Silicon Valley tech as a deus ex machina for some of the world’s most complicated challenges. Bad Blood offers a sobering warning of where that type of thinking can lead."
—Robbie Gramer, Foreign Policy

"A great and at times almost unbelievable story of scandalous fraud, surveillance, and legal intimidation at the highest levels of American corporate power. . . . The story of Theranos may be the biggest case of corporate fraud since Enron. But it’s also the story of how a lot of powerful men were fooled by a remarkably brazen liar."

—Yashar Ali, New York Magazine

"Even if you didn’t follow the story of charismatic Theranos founder Elizabeth Holmes (and the ensuing trainwreck) in the news, you will find yourself zipping through a book that proves once again that fact is stranger than fiction. A stunning look into a high-tech hoodwinking; like a high-speed car chase in a book."
—The New York Post's "28 Most Unforgettable Books of 2018"

"In
Bad Blood, acclaimed investigative journalist John Carreyrou, who broke the story in 2015, presents comprehensive evidence of the fraud perpetrated by Theranos chief executive Elizabeth Holmes... He unveils many dark secrets of Theranos that have not previously been laid bare…  The combination of these brave whistle-blowers, and a tenacious journalist who interviewed 150 people (including 60 former employees) makes for a veritable page-turner."
—Eric Topol, Nature

"Engrossing…
Bad Blood boasts movie-scene detail… Theranos, Carreyrou writes, was a revolving door, as Holmes and Balwani fired anyone who voiced even tentative doubts… What’s frightening is how easy it is to imagine a different outcome, one in which the company’s blood-testing devices continued to proliferate. That the story played out as it did is a testament to the many individuals who spoke up, at great personal risk."
—Jennifer Couzin-Frankel, Science

"In exposing the fudged numbers, boardroom battles and sickening sums of money tossed Theranos’ way, Bad Blood succeeds in highlighting Silicon Valley’s paradoxical blind spot. Insular corporate culture and benevolent media coverage have allowed a monster to grow in the Valley—one that gambles not just with our smart phones or our democracy, but with people’s lives. Bad Blood reveals a crucial truth: outside observers must act as the eyes, the ears and, most importantly, the voice of Silicon Valley’s blind spot."
—B. David Zarley,
Paste Magazine's "16 Best Nonfiction Books of 2018"

"Carreyrou blends lucid descriptions of Theranos’s technology and its failures with a vivid portrait of its toxic culture and its supporters’ delusional boosterism. The result is a bracing cautionary tale about visionary entrepreneurship gone very wrong."
Publishers Weekly (Starred)

"Crime thriller authors have nothing on Carreyrou's exquisite sense of suspenseful pacing and multifaceted character development in this riveting, read-in-one-sitting tour de force.... Carreyrou's commitment to unraveling Holmes' crimes was literally of life-saving value."
—Booklist (Starred Review)

"Eye-opening... A vivid, cinematic portrayal of serpentine Silicon Valley corruption... A deep investigative report on the sensationalistic downfall of multibillion-dollar Silicon Valley biotech startup Theranos. Basing his findings on hundreds of interviews with people inside and outside the company, two-time Pulitzer Prize-winning
Wall Street Journal reporter Carreyrou rigorously examines the seamy details behind the demise of Theranos and its creator, Elizabeth Holmes… [Carreyrou] brilliantly captures the interpersonal melodrama, hidden agendas, gross misrepresentations, nepotism, and a host of delusions and lies that further fractured the company’s reputation and halted its rise."
Kirkus

About the Author

JOHN CARREYROU is a two-time Pulitzer Prize-winning investigative reporter at The Wall Street Journal. For his extensive coverage of Theranos, Carreyrou was awarded the George Polk Award for Financial Reporting, the Gerald Loeb Award for Distinguished Business and Financial Journalism in the category of beat reporting, and the Barlett & Steele Silver Award for Investigative Business Journalism. Carreyrou lives in Brooklyn with his wife and three children.

Product details

  • Publisher ‏ : ‎ Knopf Doubleday Publishing Group; New edition (January 28, 2020)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 400 pages
  • ISBN-10 ‏ : ‎ 0525431993
  • ISBN-13 ‏ : ‎ 978-0525431992
  • Item Weight ‏ : ‎ 2.31 pounds
  • Dimensions ‏ : ‎ 5.14 x 0.84 x 7.98 inches
  • Customer Reviews:
    4.7 4.7 out of 5 stars 40,139 ratings

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John Carreyrou
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John Carreyrou is a Pulitzer Prize-winning reporter and a nonfiction author. His first book, "Bad Blood: Secrets and Lies in a Silicon Valley Startup," chronicles Silicon Valley's biggest fraud. Please direct any speaking queries to speakers@penguinrandomhouse.com

Customer reviews

4.7 out of 5 stars
4.7 out of 5
40,139 global ratings
Fake-it-until-you make-it
5 Stars
Fake-it-until-you make-it
Bad Blood: Secrets and Lies in a Silicon Valley StartupThis is a book written by John Carreyrou, a Wall Street Journal investigative reporterIt is saga of Elizabeth Anne Holmes who started at 19 a blood monitoring company with best intentions in the world, to make the patients safer. She cited the fact that an estimated one hundred thousand Americans died each year from adverse drug reactions. Theranos the company Elizabeth founded - would eliminate all those deaths, she said. It would quite literally save lives.ad Blood: Secrets and Lies in a Silicon Valley StartupShe worshipped Jobs and Apple. She liked to call Theranos’s blood-testing system “the iPod of health care” and predicted that, like Apple’s ubiquitous products, it would someday be in every household in the country."This is the Silicon Valley I dreamt of."On her father’s side, she was descended from Charles Louis Fleischmann, a Hungarian immigrant who founded a thriving business known as the Fleischmann Yeast Company. Its remarkable success turned the Fleischmanns into one of the wealthiest families in America at the turn of the twentieth century." Charles Louis Fleischmann was not only Hungarian, he was of Jewish descent, although it seems he was not a practicing Jew.Smoking cigarettes while reading the TalmudThis story is from a book called "The complete Idiot's Guide to Jewish Spirituality and Mysticism" by Michael Levin A yeshiva student comes home on Sabbath afternoon and finds his father reading the Talmud and smoking a cigarette. He is shocked: smoking is forbidden on the Sabbath. The father noticed his son is stunned by his behavior. He said:"When you know as much Talmud as I do, you too can smoke a cigarette on Sabbath"People may become self-righteous for keeping their obligations like studying the Torah and feel the rules don't apply to them. They lost the fear of God and their humility. There is no spirituality and no kindness.These are actual quotes from the book“The biggest problem of all was the dysfunctional corporate culture in which the mini Lab was being developed. Elizabeth and Sunny regarded anyone who raised a concern or an objection as a cynic and a naysayer.”“For the dozens of Indians Theranos employed, the fear of being fired was more than just the dread of losing a paycheck. Most were on H-1B visas and dependent on their continued employment at the company to remain in the country. With a despotic boss like Sunny holding their fates in his hands, it was akin to indentured servitude. Sunny, in fact, had the master-servant mentality common among an older generation of Indian businessmen. Employees were his minions. He expected them to be at his disposal at all hours of the day or night and on weekends. He checked the security logs every morning to see when they badged in and out. Every evening, around seven thirty, he made a fly-by of the engineering department to make sure people were still at their desks working.”With a board of directors including Henry Kissinger, 94 years old, with top venture capitalists on board, with her original Stanford chemistry professor Channing Robertson, receiving a 500,000 dollars check for just being a cover up consultant, General Jim Mattis who became Trump Defense Secretary, few is any contested Elisabeth legitimacyElizabeth was a drop-out of Stanford with some hypnotic presence. How come she fascinated most famous people on the Valley, but fall under the influence of her boyfriend Ramesh “Sunny” Balwani? He was twenty years older and a married man when they first met."Sunny was a force of nature, and not in a good way. Though only about five foot five and portly, he made up for his diminutive stature with an aggressive, in-your-face management style. His thick eyebrows and almond-shaped eyes, set above a mouth that drooped at the edges and a square chin, projected an air of menace. He was haughty and demeaning toward employees, barking orders and dressing people down"Epilogue - for nowIf you read the LinkedIn as I do, 99% of the people are not entrepreneurs. They just pretend being entrepreneurial when all they want is a job.So let’s assume although Elizabeth is proven guilty, she gets funded again. Would you refuse to work for her? No! You wouldn’t, despite what happened to Theranos. You will take the job again with both hands and pray this time is Kosher.And Bad Blood will become a cult book, just like Paul Coelho “The Alchemist” and Steve Jobs biography by Walter Isaacson and the words Fake-until-you-make-it will enter the Bible.
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Top reviews from the United States

Reviewed in the United States on April 26, 2024
Very interesting book (saw the story on American Greed on CNBC) and had to get the book so I would no the whole story... Its amazing what this young girl could accomplish
Reviewed in the United States on October 11, 2021
This book presents a fascinating account of a real-life story that is still unfolding. It involves a cast of characters so unique and events so beyond the norm that it is not an exaggeration to say that they are probably beyond the imagination of even the best fiction writers.

The story is about the rise and fall of the company Theranos, founded in 2003 by the 19 years old Stanford Dropout Elizabeth Holmes. The company’s objective, which it later falsely claimed to have achieved, was to revolutionize blood tests by only requiring very small amounts of blood taken by finger stick; and the tests could be performed and the results obtained very rapidly using small automated devices developed by the company. Holmes was CEO and she ran the company with her boyfriend Sunny Balwani, who had the title President. Although not learning much about science, engineering or medicine during her two years at Stanford, her charm, ambition, and deceit were able to raise hundreds of millions from venture capitalists and private investors. She was also able to persuade experienced executives of established businesses to partner with her company, including the CEO of Safeway and the Board of Directors of Walgreens. She convinced famous political and military names to serve on Theranos’ Board of Directors, including former Secretaries of State George Schulz and Henry Kissinger, Four Star General James Mattis, former Senator Sam Nunn, to name but a few. Although dropping out in her second year, her former Stanford Chemical Engineering Professor Channing Robertson stated in an article about Theranos and its CEO: “You start to realize you are looking in the eyes of another Bill Gates or Steve Jobs.” When Fortune Magazine’s legal correspondent Roger Parloff talked to Shultz and Mattis about Elizabeth, Shultz said: “Everywhere you look with this young lady, there’s a purity of motivation. I mean she really is trying to make the world better, and this is her way of doing it.” Mattis went out of his way to praise her integrity: “She has probably one of the most mature and well-honed sense of ethics – personal ethics, managerial ethics, business ethics, medical ethics that I’ve ever heard articulated,” Kissinger told New Yorker journalist Ken Auletta that Holmes had an "ethereal quality." "She is like a member of a monastic order,"

It is perhaps fortunate for America that the Soviet Union/Russia did not have a charming person of similar caliber when the above three gentlemen were serving their country in their respective high positions in the U.S. Government.

While Elizabeth was perhaps the ultimate person of authority in the company, Sunny was mostly in charge of running its everyday operation. Their leadership style included: demanding complete loyalty, complete secrecy, intimidation, and deceit. According to the book, earning projections were not based on realistic estimates, inaccurate blood test results were not made known, machines designed in-house failed to work most of the time. Folks who raised doubts about the company’s operation were fired. Employees who could not live with the thought that patients may be harmed chose to resign.

For more than a decade, the company was riding high. By 2015, Forbes had named Holmes the youngest and wealthiest self-made female billionaire in America on the basis of a $9-billion valuation of her company. The downfall began in October 2015, when the author of this book published a "bombshell article", detailing how the company’s Edison device gave inaccurate results, and revealing that the company had been using commercially available machines made by other manufacturers for most of its testing. Sanctions and other adverse actions by the Centers for Medicare & Medicaid Services soon followed, as well as a lawsuit filed by Arizona for violation of the Arizona Consumer Fraud Act. In 2016, Walgreens and Capital BlueCross announced a suspension of Theranos blood tests from the Newark lab. On June 15, 2018, Holmes and Balwani were indicted on multiple counts of wire fraud and conspiracy to commit wire fraud. Due to Covid-19, the trial of Elizabeth was delayed for a year. It began on August 31, 2021. Looks like the trial for Sunny would not take place until 2022. The ending of this saga is nowhere in sight.

On September 4, 2018, Theranos announced in an email to investors that it would cease operations and release its assets and remaining cash to creditors after all efforts to find a buyer came to nothing. Most of the company's remaining employees had been laid off on the previous Friday, August 31.

Perhaps all of this could have been avoided if Elizabeth had taken a course on Leadership before she dropped out of Stanford. The first thing one learns in Leadership 101 is: A leader without integrity will ultimately fail.
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Reviewed in the United States on June 28, 2018
A unicorn in the investment world is a startup with a massive valuation, which always felt like an insult to entrepreneurs building very real products and services. A unicorn, in the rest of the world, is a mythical creature that doesn't existed so I guess they finally got it right when Theranos was called a unicorn. Like Ringling Brothers, they strapped a horn on a goat and marketed it as a real thing. And everyone bought it.

Bad Blood was a fast and exciting read, and relatively easy, worth mentioning because there's a reasonable amount of science in there. As everyone surely knows, this is the story of a company that lied and the idiots who believed them to the tune of billions of dollars. But ultimately, it's a book about incompetence, and just how many people in this world are completely incompetent and unqualified to do their jobs. At least we can take comfort that investigative journalists are fairly competent and can reveal the incompetence of others. Theranos should never have gotten as far as they did and was only able to do so because of negligence all around.

And while I appreciate that I got to read the details of this insane story at this point in time, we'll need a sequel in a few years once the dust settles. This case is still ongoing and therefore the ending is still open, which made the end of this book feel somewhat unsatisfactory. I am especially interested to learn how the good people in this story, the ones with sense and ethics, ended up. I want to know if Rochelle sued Holmes' turtleneck off. I want to know who was behind the surveillance. I want to know what excuses the failed Board members have come up with. I want to know what excuses the VCs came up with. And I want Holmes and Sunny to get what's coming to them.

Commentary:
Most non-fiction books are actually about incompetence. True crime, history, war, these books are filled with people who should never have been given the jobs they have, and Bad Blood is no exception. Obviously the leadership of Theranos were abject failures. Their Board of Directors were a bunch of doddering, dotty seniors who led a company that has a technology they never understood, and who completely failed in their duty to manage and monitor their CEO on behalf of their shareholders. The Venture Capitalists did not perform sufficient due diligence nor did they properly monitor their portfolio. We know they were too busy drooling over the valuation and pre-counting their investment carry to bother to look into the lies. Have you ever met a finance guy who is a blood science expert? In 20 years in finance, I have never met one, and yet investors believed them when they say a blood testing technology works without a shred of evidence. So the investors failed as well, and continue to fail by giving them a pass on their negligence. The regulators were also a bit incompetent, though I suspect their SOPs prevent them from being as effective as they can be. Nor should regulators be susceptible to pressure from politically connected investors and Board Members, but they are. US military leadership, including Sensible Dog Mattis formerly known as Mad Dog Mattis, also proved themselves to be incompetent and biased to the extent that they're willing to put our soldiers' health at risk. Theranos's corporate partners, who stuck with Theranos after years of continuous failure to deliver on their promises, were hilariously incompetent. I am very grateful that the states, and not the idiot pharmacies, set the standards for patient care in their stores. Anyone still in favor of deregulating the medical field and taking power away from the FDA should exclusively use Theranos testing devices for their family's health decisions.

The most inspiring characters in this book were the youngsters like Erika and Tyler, who came out of college with a strong sense of personal ethics that they refused to give up, regardless of what the "grownups" told them to do. Tyler stood strong even as his own grandfather, Secretary of State George Schultz, tried to muscle him with lawyers, but Tyler showed grandpa what honor looks like. I'd hire those kids in a NY minute just based on their conviction, and I hope neither this experience nor any other breaks down their will and sense of right and wrong.

Will Silicon Valley and venture capital learn from this mistake? Nope! The fact is that they're still showing returns to their investors who do not care how the money is earned, as long as there are no legal or tax ramifications. But I am especially interested to how pensioners feel about VCs using CalPERS funds to invest in scams like Theranos, since the risk is much greater for them than your average venture investor. Remember Moral Hazard? Silicon Valley doesn't.
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Shaun
5.0 out of 5 stars Good book, clear pictures
Reviewed in Canada on February 28, 2024
Like very much
Joao de Almeida
5.0 out of 5 stars Muito boa leitura !
Reviewed in Brazil on April 9, 2022
Assunto muito interessante e realmente eu nao conseguia parar de ler para saber como seria o final ! Realmente a empresa tinha um produto muito avancado que poderia mudar os exames de sangue de uma maneira moderna e pratica , porem nao conseguiram produzir os aparelhos que funcionassem perfeitamente ! Porem esses problemas nao eram informados aos investidores e tambem ao usuarios , pois isso impediria a empresa de crescer como como a maioria das startups do Vale do Silicio ! Assunto realmente muito serio , real e bem escrito ! Recomendo !

,
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Linda
5.0 out of 5 stars Spannend und lehrreich
Reviewed in Germany on March 13, 2023
Super Urlaubslektüre, war ein kurzweiliges Lesevergnügen.
Die Story ist packend und obwohl man weiß, wie es ausgeht, baut sie sehr gut Spannung bis zum Finale (der Veröffentlichung von Carreyrous Artikel) auf. Unglaublich, wie viele Mitarbeitenden bei Theranos verschlissen wurden und sich vollkommen überarbeitet haben, um das Schiff zu retten. Bei vielen ging es nicht gut aus. Das nimmt man Elizabeth Holmes (neben dem Betrug der Investoren natürlich) beim Lesen sehr übel. Was für eine schreckliche Chefin.
Man lernt auch viel über die medizinische Technik hinter Bluttests.
Tim de Hoog
5.0 out of 5 stars A thrilling read!
Reviewed in the Netherlands on December 10, 2022
Reads like a thriller. Excellent analysis and behind the scenes of Theranos. A hard lesson in what greed, corruption and blind faith can do. Also shows you how vital a free and independent media is to bring fraud like Theranos to justice.
Irena
5.0 out of 5 stars Amazing book
Reviewed in Italy on May 2, 2022
So well written (and referenced). Would love to see more books from the same author.