Bad Blood: Secrets and Lies in a Silicon Valley Startup

Carreyrou reconstructs the rise and collapse of Theranos, the blood-testing company founded by Elizabeth Holmes that reached a valuation of nine billion dollars while its technology never worked. He broke the story at the Wall Street Journal in 2015 and the book expands that reporting with about one hundred and fifty interviews, sixty of them former employees.

The technical claim was that a proprietary device could run hundreds of tests from a finger-prick sample. It could not. Theranos ran most patient samples on modified commercial analysers from Siemens, diluting the small samples in ways that pushed results outside validated ranges, while presenting the results as produced by its own device. Patients received incorrect results in a live clinical setting through the Walgreens partnership.

Carreyrou documents the mechanisms that kept it running: extreme compartmentalisation so no employee saw the whole picture, aggressive litigation and non-disclosure enforcement by David Boies, a board of former statesmen with no scientific or diagnostic expertise including Kissinger, Shultz and Mattis, and investors who did not obtain audited financials or independent technical validation. The treatment of whistleblowers, particularly Tyler Shultz, is the book's moral centre.

The reporting is careful and the sourcing is documented. Carreyrou is a participant in the story, which he acknowledges in the final chapters. The book is less interested in explaining why sophisticated investors failed to conduct diligence than in narrating what happened, so readers looking for a systematic analysis of diligence failure will have to extract it. Holmes was convicted on four counts of fraud in 2022 and is serving a prison sentence.