[daveguy]

But if it is 100x more likely to not be real then it is worth investing the money to do the confirmation. This is true for medical and a lot more. Any company with a scientific foundation should have due diligence in the form of test accuracy, precision and reliability before a penny is invested. Anyone investing in a company where the technology is a scientific breakthrough should insist on confirmation tests. If those are forged then it becomes a criminal issue and you don't get to hide behind an officer level position.

I think with this specific industry testing and compliance is more important in due diligence.

[jonknee]

She had an inside track to a lot of investors (and big name board members) which helped her immensely. Add on a nice demo and it's not hard to imagine.

According to the WSJ she was childhood friends with Tim Draper's daughter and that's where she got her first round.

http://www.wsj.com/articles/at-theranos-many-strategies-and-...

> The first $1 million came from Tim Draper, a founder of Draper Fisher Jurvetson, through two of his funds. Ms. Holmes was a childhood friend of his daughter and came to him “with extraordinary energy and brilliance,” he says.

At that point you have a very bright founder who interviews well and is backed by Draper. Everyone else assumes everyone else did their research.