What Elizabeth Holmes’ conviction means for tech entrepreneurs, startups

Stephanie Sy:

Judy, Elizabeth Holmes was found guilty on 4 charges of fraud for lying to traders about the success of her blood testing machine. She was acquitted on 4 other counts associated to defrauding people who utilized the check. The jury could not access a verdict on three other fraud prices.

For extra on the broader implications, I am joined by Margaret O’Mara. She is a heritage professor at the University of Washington and creator of the reserve “The Code: Silicon Valley and the Remaking of The usa.”

Professor O’Mara, thank you for becoming a member of the “NewsHour.”

I want to remind viewers that Elizabeth Holmes was a media sensation when she initially pitched Theranos as a disrupter in the blood screening space. And then she experienced this extraordinary fall from grace that culminated in the prosecution yesterday, nevertheless this was a combined verdict.

What was your big takeaway on the jury’s determination?

Margaret O’Mara, University of Washington: Of course, this was Silicon Valley’s demo of the century, without a doubt.

My takeaway was, I was amazed that a guilty verdict came in. This is unusual to have these white-collar prosecutions of CEOs, considerably less a Silicon Valley CEO, is uncommon. So, which is a very first for Elizabeth Holmes.

But I believe the counts on which she was — the verdict ruled responsible were being types exactly where there was the strongest human body of proof that was genuinely tying her to telling traders 1 detail, and the reality remaining rather diverse, and her accountability as a CEO.

That does not signify that the other prices weren’t significant. But in terms of the proof presented to the jury and what was currently being proven to them at the demo, that individuals charges are the kinds that appeared most crystal clear-minimize.