How Elizabeth Holmes lured rich families to back Theranos

SAN JOSE: Elizabeth Holmes targeted ultra-wealthy families as early backers of Theranos Inc to avoid the potential pressure from larger investment firms to go public, according to an investor at the DeVos family office who kicked in US$100mil (RM415mil) for the blood-testing startup.

Lisa Peterson, who helped manage the DeVos family fortune at RDV Corp, testified at Holmes’ criminal fraud trial Tuesday that the smooth-talking entrepreneur courted the family with voluminous investment binders, private conversations, a lengthy tour of the company in Palo Alto, California, and a personalised on-site blood test.