Theranos 2.0? Why the Ghost of Holmes Still Haunts Health Tech
- Rich Washburn
- Jun 4
- 3 min read
In the aftermath of one of Silicon Valley’s most infamous frauds, the biotech sector finds itself confronting an uncomfortable echo. Elizabeth Holmes—still serving time for the Theranos scandal—is once again adjacent to the world of health innovation. This time, it's through her partner, Billy Evans, who now leads a startup called Haemanthus.
On paper, Hemanthus blends legitimate technologies: Raman spectroscopy and deep learning models aimed at fluid-based diagnostics. The initial application? Veterinary health—a calculated entry point with lighter regulatory scrutiny and a rapidly expanding addressable market. From a commercial standpoint, it’s smart. Cancer diagnostics for pets represent a multibillion-dollar vertical with minimal FDA interference. But beneath the surface lies a more cautionary question: Can a company escape its founder’s legacy when the founder never really left the room?
The Science Is Real. The Risk Is Perception.
Unlike Theranos’s original technology, Raman spectroscopy is a time-tested method used to analyze molecular structures through laser-based scanning. When paired with AI, particularly deep neural networks, the potential for diagnostic acceleration is real—and validated. Peer-reviewed studies from Johns Hopkins, Beijing Medical University, and others confirm that AI-enhanced spectral analysis can identify various cancers and infections with surprising accuracy.
Yet bridging that gap from lab success to market-ready product is where most ventures falter. Clinical validation, regulatory navigation, and manufacturing scalability are arduous. Layer in reputational baggage, and capital becomes harder to raise—not for lack of technical merit, but because credibility remains a non-negotiable in healthcare innovation.
A Capital Markets Case Study in Narrative Risk
Eliakim Capital tracks emerging tech stories not for their headlines, but for what they reveal about broader trends in investment psychology and risk. The Hemanthus narrative illustrates the following:
The premium on trust: In today’s market, there’s ample dry powder ($3.7 trillion globally). But LPs and institutional allocators are increasingly discerning. They aren’t just funding ideas—they’re underwriting governance, transparency, and character.
IP ≠ Immunity: Hemanthus holds at least one patent and has built a prototype, but early IP filings alone are no longer enough to de-risk a medical device play. The Theranos fallout elevated due diligence expectations across the board.
Narrative drag is real: Despite distancing language (“This is not Theranos 2.0”), the startup’s public association with Holmes makes Hemanthus a tough sell to major VCs. Thus far, fundraising appears limited to friends, family, and private individuals outside traditional biotech circles.
When the Story Overshadows the Signal
The bigger takeaway isn’t just about one startup. It’s a reminder that in capital markets—especially in sectors where the line between breakthrough and vaporware is razor thin—the story investors believe can be as powerful as the science being built.
For founders in AI, biotech, or any high-complexity domain, the lesson is clear: narrative equity matters. So does regulatory fluency, transparency with validation protocols, and clarity around use of funds. As AI continues to intersect with diagnostics, scrutiny will only increase.
What Comes Next
Whether Hemanthus becomes a cautionary footnote or a quiet success remains to be seen. But the broader implications are already in play. As capital continues to chase real innovation amid reputational landmines, the firms best positioned to scale are those combining validated science, credible leadership, and high-integrity execution.
At Eliakim Capital, we guide founders and funds alike through this increasingly complex terrain—whether navigating IPO readiness, tech-driven M&A, or strategic capital deployment in emerging markets. The goal isn’t just to build the next big thing. It’s to build the right thing—with resilience, rigor, and reputation intact.
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