Lesson 10 Case Write-Up:
· Recall the efforts to recruit investors to Theranos. To what extent did investors KNOW about the value of the Edison compared to the extent to which there was UNCERTAINTY about what the Edison could actually do. How do you see Holmes and others in Theranos trying to signal the value of the Edison to investors? Did they provide hard facts or abstract signals or symbols?
· Recall the high-profile officials that Holmes was able to recruit to the Theranos Board of Directors. Who were they, and if possible, provide an order in which they joined (if an order isn’t possible, at least indicate who the first couple of Board members were). In social capital terms, what role do you think these early, high profile Board members played? Did they contribute to the information available to Theranos for designing the Edison? Did they lend their reputations (e.g. like a strategic partner)? Something else?
For Lesson 10, the documentary film assigned as the case is available for rent on YouTube: