Second Theranos Lab Failed U.S. Inspection(wsj.com)
wsj.com
Second Theranos Lab Failed U.S. Inspection
http://www.wsj.com/articles/second-theranos-lab-failed-u-s-inspection-1484708428
http://www.wsj.com/articles/second-theranos-lab-failed-u-s-inspection-1484708428
The same is probably somewhat true in tech generally, but VCs in this area don't seem capable of doing the DD. They invest based on personality, connection or business background.
That's all great, but really what these early stage companies need is a CEO with a strong scientific background and focus.
In my experience, those CEOs often don't come across as strong enough to investors who are generally more comfortable investing in tech, which is easier for them to understand.
So my hope is that high profile failures make VCs wake up, and assess scientific startups differently. However I think it's more likely that they'll just avoid them all together.