An embattled blood-testing innovator struggles for a reboot. Theranos, the Silicon Valley company that once promised a health revolution, is beating a full retreat from the consumer blood-testing business on which it built its name (The Wall Street Journal). In an open letter, founder Elizabeth Holmes announced that from now on Theranos will shut down its partnership with Walgreens, shed 40 percent of its workforce (about 340 jobs), and concentrate on producing testing equipment to sell to doctors and healthcare facilities. The retrenchment follows Wall Street Journal stories earlier this year that raised troubling questions about inflated claims Theranos had made for its blood tests,and the company’s forthrightness with investors and the public. All along, the lesson from the Theranos affair has been that you can’t build public trust on a foundation of obsessive secrecy. Yet Holmes’ terse, opaque letter suggests that little at Theranos has changed on this front. Sure, she’s treading a legal minefield. But she offers the world no reason to give Theranos a second chance; she doesn’t even acknowledge the problem.
MailChimp is the anti-startup startup. It’s in Atlanta, not the Bay Area. It didn’t load up on venture-capital money early in its life. It grew slowly, and says it has always been profitable. That means that MailChimp, the popular email-list management tool, is still wholly owned by its two co-founders, even as it’s become a company with 550 employees and a projected $400 million in revenue for 2016. (We use it here at NewCo.) Profiling MailChimp in The New York Times, Farhad Manjoo argues that this model deserves more glory than it gets, and might be eminently more sensible for many startups than the VC-backed model, particularly for the kind of small business that makes up MailChimp’s customer base. MailChimp is not immune to funky conference-room names or crazy decor (like a boardroom decorated with skate boards), but in most substantial ways it bucks every Silicon Valley trend yet seems to stay true to the core of the startup ethos — focusing on a mission and serving customers.
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