I Get It, Elizabeth Holmes - A Deep Dive
The Allure and Implications of Elizabeth Holmes' Persona
Elizabeth Holmes’ distinctive, low-pitched voice played a significant role in securing over $700 million in funding for her ultimately unsuccessful venture, Theranos. During investor presentations, I often reflect on her frequently repeated statement: “I hope that fewer individuals will experience the premature loss of loved ones.”
Navigating the Venture Capital Landscape
When presenting to venture partners, questions arise regarding whether altering my own presentation – perhaps adopting a shorter hairstyle, cultivating facial hair, or concealing my pregnancy – would enhance my appeal. Would a more assertive demeanor or a dramatic gesture increase the likelihood of securing investment? Would investors be more inclined to understand my business and me as individuals?
The answer, in all probability, is affirmative.
The Silicon Valley Ecosystem and the "Fake It Till You Make It" Mentality
Holmes intentionally employed a markedly deep vocal tone to gain traction for her startup within a predominantly male environment. She made ambitious promises regarding revolutionary pinprick tests capable of detecting numerous diseases, attracting prominent investors such as Henry Kissinger, George Shultz, James Mattis, and Betsy DeVos. Her attire mirrored that of Steve Jobs, notably including the signature Issey Miyake turtleneck, and she assembled a team of 800 talented professionals. While her misrepresentations were extensive, she wasn’t operating in isolation.
The prevailing culture within Silicon Valley and the venture capital world actively amplified her existing beliefs about her company and her inclination to overpromise.
Questionable Practices and Underlying Principles
Recent events, including a virtual hearing where she sought to shield a substantial database from governmental access, and a prior claim of $100 million in 2014 revenue (when actual revenue was $100,000), are undeniably reprehensible. However, I maintain the belief that she genuinely believed she was pursuing a worthwhile goal, adhering to the common Silicon Valley maxim: “Fake it till you make it.”
She once echoed the sentiments of prior innovators, stating: “This is the pattern when striving for change – initial dismissal as madness, subsequent opposition, and eventual world-altering impact.” One wonders if she perceives herself as currently navigating the second phase of this process.
The Challenges Faced by Women in Fundraising
Securing funding for a new company fundamentally relies on two key elements: established connections and a compelling presentation. For women, establishing these connections can prove particularly challenging. Currently, only approximately 12% of decision-makers within venture capital firms are women, and the majority of firms lack even a single female partner.
Relationship Dynamics and Implicit Bias
Even with existing connections, relationship building can be unconventional. My co-founders often communicate with investors via text, while I receive information secondhand. While funding for women-led startups peaked at 2.8% in 2019, it declined to 2.3% in 2020, potentially due to investors reverting to conservative strategies during times of uncertainty. Moreover, investor expectations often align with traditionally masculine traits. Studies demonstrate that identical presentations delivered by men and women are evaluated differently, with men consistently receiving higher ratings.
Holmes’ deep voice, despite being unconventional, likely contributed to her perceived credibility.
Double Standards and Conflicting Expectations
Replicating Holmes’ fundraising success is not straightforward. Women attempting to emulate her approach may face negative consequences. Assertive men are often viewed favorably, while assertive women are frequently labeled as emotionally unstable. Conversely, women who conform to stereotypically feminine behaviors may be perceived as lacking strength. Hillary Clinton encountered this dilemma during her presidential campaign, facing criticism for appearing both aggressive and cold, as well as weak and indecisive.
The Nature of Questions Asked in Pitches
Furthermore, women pitching their ventures are often subjected to more questions focused on potential losses and risks, while men are asked questions centered on potential gains. Women can effectively counter this bias by framing responses to preventative questions in a positive light. Holmes intuitively understood this dynamic and strategically leveraged it, recognizing it as essential for her success.
Personal Experiences and Systemic Issues
While I am distinct from Holmes, I recognize the necessity of adapting one’s persona. I have personally experienced being overlooked and even advised to alter my product line (bras) due to perceived investor disinterest. I ultimately conceded to this suggestion.
I do not intend to defend her actions, but I believe the focus on her individual failings obscures the systemic environment that contributed to them. Reading John Carreyrou’s book, I initially resolved to avoid similar pitfalls as I launched my own company. However, as I’ve encountered the inherent pressures and biases, I’ve come to understand how the system itself shaped Holmes’ trajectory.
A Call for Systemic Evaluation
Why do we scrutinize the individual as much as, or more than, the biased system that fostered her behavior? She stands out precisely because of her visibility, but how many other Elizabeth Holmeses exist, operating less conspicuously? These issues are deeply ingrained within the system itself, rendering them largely invisible, as David Foster Wallace illustrated in his “water speech,” and potentially beyond our current capacity to rectify.
The next time someone makes a lighthearted remark about Holmes’ baritone voice, remind them of the disconcerting reality that individuals with deeper voices are more likely to receive funding.
Former TechCrunch COO Ned Desmond is now Senior Operating Partner at SOSV, which has invested in unspun.
