In 2013 and 2014, Elizabeth Holmes and her revolutionary company Theranos were the newest shining stars of Silicon Valley. Promising to provide faster, easily accessible blood tests and eliminate the need to draw several vials of blood, Theranos was a paragon of cutting-edge technology. Holmes, dubbed the next Steve Jobs, captivated everyone, including presidents, the media and investors with her ingenious vision to use a single blood drop to diagnose deadly diseases.
However, hopes for the end of painful blood tests were crushed in 2015 when there was speculation that the compact and fast blood-testing machine Holmes touted did not work. Test results had been faked and over $1.3 billion had been invested in imaginary technology.
In retrospect, the truth should have been obvious. Holmes had plenty of naysayers, scientists who insisted that the premise of her company was scientifically impossible given existing technology. But this did not deter investors or partners. After the scandal erupted, previously staunch supporters were shocked by the level of deception Holmes had gotten away with. People quickly called into question Silicon Valley culture and the “fake it till you make it” mindset that is not uncommon in tech companies.
“The real problem lies in Silicon Valley’s culture of unrealistic expectations”
Thousands of startups, each with their own hopes to be the next big thing, vie for investment and glory in Silicon Valley. Each one has its own innovative idea, but with a 90% failure rate, success is far from guaranteed. In an environment where everyone has made tremendous sacrifices for the slim chance at success, the pressure to make it is high. On one hand, this pressure creates unrealistic expectations. At the same time, it also spurs innovation.
The need to be the first, the best and the most revolutionary drives many to desperate and sometimes unethical measures. Theranos’ high failure rate could have compromised timely medical care for patients. Silicon Valley perpetuates a culture of succeeding no matter what, often at the expense of a healthy work environment. Startup culture, often embraced in the Bay Area’s emerging tech companies, values creativity and open communication. Images of highly driven, fresh-out-of-college employees playing ping pong and lounging in bean bag chairs come to mind. However, the less glamorous side of startup culture takes a staggering toll on employees. Long working hours and impossibly high standards of work are expected. According to a survey conducted in 2020 by Blind, a workplace chat app, 68% of tech industry workers surveyed reported feeling burnt out, citing reasons like “unmanageable workload, insufficient rewards, and a lack of control of their work.” Exacerbated by the pandemic, workers are exhausted.
“The less glamorous side of startup culture takes a staggering toll”
Additionally, the tendency to cut corners to scrape by has become commonplace. Holmes is hardly the first to be under fire for completely deceiving customers, though none of the other cases had the same impact or coverage. Theranos’ case caused such an upheaval because Holmes unabashedly interfered with her customers’ health. Some customers even underwent life changing medical procedures. But while Theranos’ lies were unprecedented, they were enabled by Silicon Valley’s culture of “fake it till you make it.”
Still, the pressure to succeed in Silicon Valley is a double-edged sword. The all-or-nothing attitude, tendency to defy the expectations of science and concentration of highly ambitious employees are also a perfect combination for success. The highly competitive culture of startups guarantees a constant output of better, faster and cheaper technology that has made Silicon Valley one of the most productive economies in the world. It has set a new standard of speed, with brand new phones coming out every year and computers becoming twice as fast every two years. In addition, the startup culture that arguably defines Silicon Valley entices aspiring entrepreneurs to wholeheartedly embrace risk-taking and the courage to build a business on what seems impossible.
In Silicon Valley, only a small percentage of startups are able to survive longer than a couple years, and even fewer come out on top. Holmes and her disgraced company spun a $9 billion web of lies, much to the disbelief of unassuming investors and customers. Although Theranos went to the extremes of dishonesty, the real problem lies in Silicon Valley’s culture of unrealistic expectations, which paved the way for Theranos’ fraudulent “success.” So while the pressure to succeed has made Silicon Valley renowned, it has also made deception far too acceptable under the guise of an innovative culture.
