// STARTUP COMPARISON
Theranos vs Wirecard
Theranos failed in 2018 due to Fraud. Wirecard failed in 2020 due to Fraud. Both failed for the same reason — Fraud.
| METRIC | 🔥 Theranos | 🔥 Wirecard |
|---|---|---|
| Sector | Biotech | Fintech |
| Country | USA | Germany |
| Founded | 2003 | 1999 |
| Died | 2018 | 2020 |
| Raised | $945M | Public (DAX) |
| Peak | $9B valuation | €24B market cap |
| Primary Cause | Fraud | Fraud |
// WHY EACH FAILED
🔥 Theranos
Fraud
Theranos failed because its Edison blood-testing device never worked. The company raised $945M while falsifying results using conventional machines. A 2015 Wall Street Journal investigation by John Carreyrou exposed the fraud. Elizabeth Holmes was convicted in January 2022 and sentenced to 11 years in prison.
// LESSON
The product must work. "Fake it till you make it" ends at the FDA boundary. No amount of narrative replaces a working device.
The product must work. "Fake it till you make it" ends at the FDA boundary. No amount of narrative replaces a working device.
🔥 Wirecard
Fraud
Wirecard, a DAX-listed German payment processor, admitted in June 2020 that €1.9B supposedly held in Philippine bank accounts did not exist. Auditor EY had signed off for nine years. The Financial Times had raised doubts for years. CEO Markus Braun was arrested. COO Jan Marsalek fled to Russia and remains a fugitive.
// LESSON
A DAX listing is not due diligence. If cash balances cannot be independently verified, they do not exist. Auditors sign documents, not reality.
A DAX listing is not due diligence. If cash balances cannot be independently verified, they do not exist. Auditors sign documents, not reality.
// EXPLORE FURTHER