Theranos bags additional $100 million in debt financing
Surprisingly enough, Theranos has secured $100 million in debt financing.
First reported by Business Insider, the company reportedly told investors it had secured the money from Fortress Investment Group, a New York-based private equity firm that was acquired by Softbank earlier this year.
Of course, this is debt financing, not equity and Theranos will surely need it as it has been bleeding money, laying off more than half its workforce this year and trying to come up with ways to keep it afloat.
Theranos was a once Silicon Valley darling valued at over $9 billion for its promise to detect more than 200 diseases on a single drop of blood. But the company fell from grace after it was discovered it was giving patients faulty test results. Theranos soon faced several lawsuits and came under federal investigation. It’s co-founder and CEO Elizabeth Holmes was barred from entering her own labs, the labs soon shut down and the company had to pivot — hard — to a disease detecting box contraption instead.