How Startup Founder Elizabeth Holmes Went from Billionaire to Broke

Billionaire Elizabeth Holmes, founder and chief executive officer of Theranos Inc., speaks during a Bloomberg Television interview at the Vanity Fair 2015 New Establishment Summit in San Francisco, California, U.S., on Tuesday, Oct. 6, 2015. The summit assembles titans of technology, politics, business, and media for inventive programming and inspiring conversations around the ideas and innovations shaping the future. Photographer: David Paul Morris/Bloomberg via Getty Images
Billionaire Elizabeth Holmes, founder and chief executive officer of Theranos Inc., speaks during a Bloomberg Television interview at the Vanity Fair 2015 New Establishment Summit in San Francisco, California, U.S., on Tuesday, Oct. 6, 2015. The summit assembles titans of technology, politics, business, and media for inventive programming and inspiring conversations around the ideas and innovations shaping the future. Photographer: David Paul Morris/Bloomberg via Getty Images

Elizabeth Holmes, who was said to have a net worth of $4.5 billion just a year ago, is now as broke as the rest of us, according to a new tally of her wealth by Forbes magazine. 

The publication, which had named Holmes one of the country’s wealthiest young entrepreneurs and America’s richest self-made woman just a year ago, rescinded its ranking on Wednesday.

“Our estimate of Holmes’ wealth is based entirely on her 50% stake in Theranos,” the magazine said. The privately held blood-testing startup Holmes founded had been valued at $9 billion after its last round of investor funding. Since then, serious questions have emerged about the reliability of its proprietary blood-testing equipment, and the company was fielding questions from federal regulators as well as a criminal investigation to determine if Holmes and the company’s leadership misled investors.

Forbes said the other factor in its revaluation of Holmes’ wealth was based on a new estimate of her company’s revenue at only $100 million.

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Source: Money.com | Martha C. White