Health and science startups could be uniquely positioned to dupe investors and the public, experts say
Health and science startups seem uniquely positioned to fool investors and the public.
Theranos is a well-known example of a risky healthcare investment gone wrong, but a handful of other new health and science ventures have raised questions too.
Investors, psychologists, and researchers told Business Insider that this was happening for several reasons, including the amount of capital flooding the space as well as naivete and inexperience.
Primarily, the Silicon Valley tech ethos of “move fast and break things” is not being counterbalanced by the healthcare principal of “do no harm,” the experts said.
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Healthcare investing isn’t for the faint of heart.
Where a traditional Silicon Valley tech startup might dare to disrupt how people share photos or hail a ride, health and science startups often involve putting vulnerable people’s lives on the line.
Theranos is a well-known example of a risky healthcare investment gone wrong. Investors sank hundreds of millions of dollars in a blood-testing company with little to no published science, and when it was gradually revealed that the advanced technology required for the company’s ideas did not yet exist, Theranos toppled.
John Ioannidis, a professor of medicine at Stanford who was an early Theranos whistleblower, told Business Insider that the company was not an anomaly.
Ioannidis authored a recent study that found more than half of well-funded healthcare startups were failing to publish any research, a practice considered key to ensuring that the science behind a new company is solid and that it won’t harm patients.
Ioannidis, along with investors, psychologists, and other researchers, told Business Insider that these problems were cropping up for several reasons, including the sheer amount of capital flooding the biotech startup space as well as scientific naivete and inexperience on the part of …read more
Source:: Business Insider