[inetknght]

> why didn't any one of the medical consultants or partners bring this up sooner?

Outside of direct "I physically see this patient", people can forget they work in medicine where their answers can mean life or death decisions.

In that situation people end up not wanting to bite the hand that feeds.

When you have automated stuff that has high throughput with little or no human interaction, you seriously limit the opportunity for humans to raise questions.

[_Codemonkeyism]

Totally agree, not sure why they've killed your karma.

Between taking a pay cheque and whistle blowing, the large majority of people will always not rock the boat and take the money.

[epmaybe]

I think you're referring to the people working for theranos itself. However, investors generally try and do their due diligence before investing. Did none of the investors seek an expert to verify the claims made by Theranos prior to investing?

[rdtsc]

There is a concept of self-deception. During a con, a successful conman does very little, they "just" have to prime the mark. After they bite, then they fool themselves so to speak.

Just because VC have money doesn't necessarily imply they are more rational or better thinking. Everyone involved here wanted this to be real and true. So while on paper due diligence was done, unconsciously nobody wanted to lift the curtain too much and peek what's behind.

This is also very common with software testing. Often when developers are testing their own software, they are not very good at discovering bugs and so they end up in production. This happens because even though rationally they want to ship a better product, irrationally it is hard to get into a mentality of proving that the product you just sweated months on is broken, or bug ridden or unstable and so on. So tests are written but they are written to show make them pass and show that stuff and unconsciously avoiding the trick or edge cases that would reveal brokenness.

[Nanite]

Yes, and this is why you won't find any reputable biotech VC on the investor list of Theranos ( Mostly a mix of private equity, family funds and informals) . Biotech VC's have domain experts in house or in their network who won't take the narrative at face value and do ask the hard questions.

[inetknght]

I write software which analyzes DNA. It's pretty interesting to hear the varied responses from lab staff when questions are asked. Many times, however, questions (or sometimes answers) end up being overridden by business needs (aka deadlines). Being a business, that's rather expected to happen now and then.

But it bothers me that many of the questions that end up being unanswered are typically some of the more fundamental questions I ask.

[manigandham]

> investors generally try and do their due diligence before investing

They don't, especially in SV. Several of them have written about this. Beyond some cursory checks, they don't do much since it's often too expensive and time consuming to investigate every possible deal. A strong team with good connections and referrals is usually enough.

[verulito]

I recall reading on Quora that the CEO used family connections to land her initial funding from some reputable investors. They may have glossed over the due diligence. The rest just piggybacked on the reputation of the early investors. There may have been some or many which did that diligence but since they didn't speak up, we'll never know.

[charlesdm]

Herd mentality? Later stage investors probably assumed the early stage investors did their homework, while ultimately no one really did (or the early investors weren't at home enough in the space to realise the product wasn't properly working, or results were being faked, etc)

[epmaybe]

I think that's a more accurate reason. And it's equally likely that theranos just turned down investors that tried to dig too deep.

[eastWestMath]

Any chance those physicians will be facing investigations?

[inetknght]

I'd be willing to bet that it's not just physicians though. Lab staff on the back-end who actually do the work don't have the same rigor of training as medical doctors do.