This article points out 6 lessons entrepreneurs can learn from the fall of Theranos:
- Entrepreneurs have to be honest to their advisers to actually benefit from their advice.
- Be transparent in what your product can do and in what it can’t, especially to business partners.
- Raising capital does not solve all of a company’s challenges.
- Take proactively full responsibility of a failure.
- Follow the lean-startup method (build, measure, learn) and admit to (and learn from) early failures to prevent later failures with devastating consequences.
- Be careful when promoting your product in the public.
I think the article is correct in pointing out that there are several lessons both entrepreneurs and investors may learn from the Theranos debacle. But the fall of Theranos itself and the willingness of financiers to invest in it without seeing a full working prototype for years also indicates to me that at a certain point, it might become extremely difficult for all the involved parties to accept a complete failure of the project.