Call It The Theranos Effect: Health-Tech Startups Now Face A "Burden Of Proof"

In the wake of the headlines about the accuracy of the blood-testing startup's technology, other companies will likely face new scrutiny.

The success of Theranos, the blood-testing startup recently valued at $10 billion, has inspired many other health-care startups in recent years. Now, in the wake of reports that question the accuracy and effectiveness of its technology, the company is serving as a cautionary tale of what happens when Silicon Valley's disruptive ethos clashes with regulated sectors of the economy. And it is likely to make investors more cautious and increase the scrutiny of regulators into other startups in the consumer health-technology industry, say experts who told Fast Company that it will now be more challenging than ever for other health-technology companies to challenge the status quo.

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