A brief segment in the documentary about Elizabeth Holmes called The Inventor: Out for Blood in Silicon Valley features former US president Bill Clinton, as he moderates a conversation with Holmes, the 37-year-old founder of the now-dissolved company, Theranos. The conversation was from 2015, on the future of equality and opportunity.
In it, Mr Clinton says to Holmes: "You founded this company 12 years ago, right? Tell them how old you were." Holmes replies: "I was 19." There is applause in the forum, rightfully so – also from the billionaire founder of Alibaba, Jack Ma, who was on the panel – for here was a promising young entrepreneur who had set about revolutionising blood testing technology with the aim of delivering affordable blood tests to American households.
Holmes's stated ambition was to make detecting ailments accessible, inexpensive and to improve the chances of illnesses being curable, because of the easy and early diagnosing. Her dream was to install a boxy device, about the size of an office printer, called the Edison, in every home. The device held the unparalleled promise of being able to carry out multiple blood tests, thereby circumventing the need to go to expensive doctors or laboratories or worry about insurance. All this would be done with just a few drops of blood, she claimed. But this was a scam. The device didn't work and the blood tests spewed wrong diagnoses. Holmes was convicted yesterday on four out of 11 charges of fraud and conspiracy. She could face 20 years in jail for each charge.
To be sure, the promise of her idea was immense. If the blood testing devices actually worked – and were not fraudulent and ultimately dangerous, as proven – they could have revolutionised health care and saved lives. Indeed, in the future if and when efficient diagnostics do work, lifespans and the quality of life could vastly improve.
The promise and potential of this idea is what the savvy coterie of high-profile investors are said to have seen in Holmes' pitch. The story of Theranos – an amalgam of the words therapy and diagnostics, as Holmes explains in the film – gripped imaginations and understandably so, even if the claims were too readily believed, without adequate scientific proof. But a medical start-up with such potential and a charismatic young founder, quickly drew in powerful backers that included US senators.
But in the face of mounting legal troubles and claims that Theranos was a scam, the company that was founded in 2003 by a 19-year-old, who discontinued her education at Stanford – dropping out of college like her idol, Apple's founder Steve Jobs – dissolved in 2018, ending a dangerous untested technology being unleashed on unsuspecting Americans who simply wanted a blood test.
There are several lessons to be drawn from this Icarian tale of Silicon Valley's youngest self-made female billionaire in a male-dominated environment, whose company was valued at $9 billion at its peak.
A perhaps universal culture of cheering on start-ups – particularly those that make revolutionary claims in the field such as medicine – ought to be tempered with scepticism, at least until claims that the company makes pass the stringent tests of regulatory authorities.
A healthy appetite for risk in investors is fitting. Indeed, many successful CEOs might deem it necessary. But the message to heed is not just for start-ups or investors, nor merely for students studying management and finance.
Several facets of Theranos's downfall deserve scrutiny and reflection. The lessons we derive from the story of Holmes's deluded and dangerous fiction can help refine our outlook to life, the choices we make, the people we believe and trust – not just in business. The lessons are bound to impart value to entrepreneurs, regulators, businessmen and women all over the world. More broadly, however, there is a chapter on integrity and what constitutes character. Pondering those questions is not just for young executives. It is an informative and cautionary tale for everyone.
Match info
Karnataka Tuskers 110-3
J Charles 35, M Pretorius 1-19, Z Khan 0-16
Deccan Gladiators 111-5 in 8.3 overs
K Pollard 45*, S Zadran 2-18
MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham v Ajax, Tuesday, 11pm (UAE).
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Games on BeIN Sports
The Year Earth Changed
Directed by:Tom Beard
Narrated by: Sir David Attenborough
Stars: 4
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
FIGHT%20CARD
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MATCH INFO
Manchester City 1 (Gundogan 56')
Shakhtar Donetsk 1 (Solomon 69')
Grand slam winners since July 2003
Who has won major titles since Wimbledon 2003 when Roger Federer won his first grand slam
Roger Federer 19 (8 Wimbledon, 5 Australian Open, 5 US Open, 1 French Open)
Rafael Nadal 16 (10 French Open, 3 US Open, 2 Wimbledon, 1 Australian Open)
Novak Djokovic 12 (6 Australian Open, 3 Wimbledon, 2 US Open, 1 French Open)
Andy Murray 3 (2 Wimbledon, 1 US Open)
Stan Wawrinka 3 (1 Australian Open, 1 French Open, 1 US Open)
Andy Roddick 1 (1 US Open)
Gaston Gaudio 1 (1 French Open)
Marat Safin 1 (1 Australian Open)
Juan Martin del Potro 1 (1 US Open)
Marin Cilic 1 (1 US Open)
The specs: 2018 Maxus T60
Price, base / as tested: Dh48,000
Engine: 2.4-litre four-cylinder
Power: 136hp @ 1,600rpm
Torque: 360Nm @ 1,600 rpm
Transmission: Five-speed manual
Fuel consumption, combined: 9.1L / 100km
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Four-day collections of TOH
Day Indian Rs (Dh)
Thursday 500.75 million (25.23m)
Friday 280.25m (14.12m)
Saturday 220.75m (11.21m)
Sunday 170.25m (8.58m)
Total 1.19bn (59.15m)
(Figures in millions, approximate)
Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.
- It’s So Easy
- Mr Brownstone
- Chinese Democracy
- Welcome to the Jungle
- Double Talkin’ Jive
- Better
- Estranged
- Live and Let Die (Wings cover)
- Slither (Velvet Revolver cover)
- Rocket Queen
- You Could Be Mine
- Shadow of Your Love
- Attitude (Misfits cover)
- Civil War
- Coma
- Love Theme from The Godfather (movie cover)
- Sweet Child O’ Mine
- Wichita Lineman (Jimmy Webb cover)
- Wish You Were Here (instrumental Pink Floyd cover)
- November Rain
- Black Hole Sun (Soundgarden cover)
- Knockin’ on Heaven’s Door (Bob Dylan cover)
- Nightrain
Encore:
- Patience
- Don’t Cry
- The Seeker (The Who cover)
- Paradise City
Russia's Muslim Heartlands
Dominic Rubin, Oxford
South Africa v India schedule
Tests: 1st Test Jan 5-9, Cape Town; 2nd Test Jan 13-17, Centurion; 3rd Test Jan 24-28, Johannesburg
ODIs: 1st ODI Feb 1, Durban; 2nd ODI Feb 4, Centurion; 3rd ODI Feb 7, Cape Town; 4th ODI Feb 10, Johannesburg; 5th ODI Feb 13, Port Elizabeth; 6th ODI Feb 16, Centurion
T20Is: 1st T20I Feb 18, Johannesburg; 2nd T20I Feb 21, Centurion; 3rd T20I Feb 24, Cape Town
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
COMPANY%20PROFILE
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