You guys remember Theranos? When Safeway announced their deal with Theranos in 2012, a bunch of companies working in blood diagnostics folded because they couldn’t raise money or because their investors clawed back entire rounds.
A couple of friends had just raised a series B round to commercialize their surface plasmon resonance blood testing device, which would have actually done what Theranos promised with onsite blood testing (except with proper blood draw, not a finger prick). They were getting the product ready for golden standard testing with a CRO when investors decided it wasn’t worth trying to compete with a Theranos already in the pocket of major pharmacies and pulled the series B funding.
Patents ended up getting sold to some patent troll shortly before the news broke that Theranos was a scam.
The people who funded Theranos weren’t even desperate, just greedy. Imagine what fingers they’ll put on the scales when they’re actually staring death right in the face? It’ll be a disaster.
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[0] - The situations can be ethically and emotionally complex, so I'm not passing any generalized judgement, other that this is something a person might be concerned about when contemplating the possibility of ending up in this situation in the future.
[1] - Arguably the same thing, but that's another topic.
Bad money chases out good, increasing the fraction of money in bad hands by billions or tens of billions is going to have a palpable effect on the stability of the world.
This also harms eveyone because all the money pouring into a treatment that was a scam from day one is oppertunitu y lost.