I suspect this wouldn't be as much of a problem in the valley if so many investors and VCs weren't so incapable of critical thinking. The Juicero debacle comes to mind.

edit: As someone coming into tech from physical science, I have never seen the Dunning-Krueger effect anywhere like I do in tech. It's mainly in the management, but folks do have a very serious problem accepting expertise from scientists or engineers outside of tech industry.

Juicero was more of gross incompetence than fraud. The outcomes were similar, but the root causes are not quite the same.

Investors should have consulted researchers in the biomedical field before investing. They would have told them that what Theranos was promising is impossible. Everyone who invested in this fraud did not do their due diligence.

I'm not sure why this is being downvoted when it is definitely true. Real biomed companies were approached, but universally turned Theranos down because they knew the limitations what what Theranos was attempting. In the face of that rejection, Holmes turned to military/gov't people and investors with big names, but no real healthcare clout.

Yeah, but it matters when you’re in healthcare