Analysts: Theranos verdict sends a chill through US startups

Holmes’s months-long trial shone a spotlight on the blurred line between chutzpah and cheating that some say marks modern-day Silicon Valley. — Reuters

SAN FRANCISCO: Fraud convictions this week for Theranos founder Elizabeth Holmes will send a chill through Silicon Valley entrepreneurs, insiders say, now they know there is the threat of jail for airy promises that come to nothing.

But with billions of dollars washing around the tech industry in search of the next big thing, the fake-it-til-you-make-it ethos is here to stay.