How Elizabeth Holmes rose to prominence in Silicon Valley: Part 1

The Stanford dropout had become the youngest female self-made billionaire and she seemed to be on the cusp of greatness until questions swirled about her blood-testing technology's accuracy.
9:29 | 03/16/19

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Transcript for How Elizabeth Holmes rose to prominence in Silicon Valley: Part 1
Black turtle necks blue eyes smoky voice we will change our lives and our world. Here is is that Steve Jobs Elizabeth Holmes was at tech super nova who said she had him easing invention making it possible. Any blood test for McCain dropped what her. Oh my god this is a rocket ship the youngest female self made billionaire CEO of her own company. Magazine cover of the magazine. We cover afternoon news article blog posts videos speech that golden girl of Silicon Valley part of the news time 100 list just out. Heard she was traveling with bodyguards. Carry guns. Capital and private. Only problem. His home snow at areas could not do all those tests dashing. Due to this day Elizabeth Holmes denies any wrongdoing. Silicon Valley. We're everyone wants to change the world and make a billion dollars while they're at it. Feel your success true in nineteen year old Elizabeth Holmes she had just dropped out of Stanford and had a grand vision to revolutionize health care. By making blood tested more affordable and more accessible for all. She opened her first office in this building. And named her company parent ups a combination of the words there are. We've made it possible room to run. Comprehensive laboratory tests from a tiny sample. Or a few drops of blood they could be taken from a finger. That sample was then put into a cartridge and then placed into this portable device which she claims processed hundreds of blood tests. I sit this could be the holy Grail. Elizabeth became a master at marketing. And having him. Gone through in in my own life losing. People that I love I couldn't think of anything that was more meaningful than being able to change the way. People go through what they say goodbye to concerns from high profile panels to Ted tops that breaks in the world and wish him. No one ever has to say to buy. Too soon became Elizabeth's mom tried to build a world. Which you don't have to say goodbye to sea world in which people don't have to say. Goodbye to exit to choose its so you don't need as part of her seductive business. In 2009. She was desperately in need of more money but Elizabeth. Had an ace up her sleeve. First chemistry mash trust him as a warning posted on the site. Sonny well Bonnie was a multimillionaire. Who seemingly came out of nowhere to save the day. And you this mission and what company must try to do plus Paramount. So. I ended up giving gave thirteen million dollar personal loan. Sunny but want he had made his own fortune Microsoft and look listen he had zero. Medical credentials and yet he became. Essentially the most powerful person the company next Elizabeth. In early 2010. The duo secured a meeting with pharmacy giant Walgreens. We leave we're interested in partnering with Walgreens because of the retail footprint. The partnership with Walgreens is a huge game changer because Walgreens has his moments centers and if they have the ability to. That's people's blood with a finger prick Reitman store. He could change everything. According to Walgreens. There are no set their technology have been comprehensive legality. And was viable and consumer ready. Walgreens saw the chance to be at the forefront of something Hughes. So the eventually cut of 140 million dollar deal. Elizabeth has raised more than 400 million dollars. 31 years old Elizabeth top Forbes's list of America's richest self made women. This CEO is out for blood. Nine billion valuation. She continued to be a media darling but this dogged investigative journalist just wasn't buying it. I read profile Elizabeth Holmes in December 2014. Might. And all that and a new Yorker in man that one of the things that struck me is on spin that story was this notion that she had dropped down. A Stanford with just two semesters of chemical engineering costs under our belts. John Carey brings a reporter with the Wall Street Journal had his hands on its next story. One of the first things that raised my eyebrows was this song you know Muslims were tonight him. I was stunned by that because in the New York. Or story that clear implication was that she was single. For you and I don't want me Iraqis dancing relationship yes and what. Through blue your time Jerry tell investors that you have ever met. Religion. It was concealed. From the board it was concealed from the press. It was concealed from investors you think it was intentional bad they had I was absolutely intentional. Ultimately. Teary ruling find his big break in and then 25 year old former employee. Tyler Schultz. But Tyler wasn't just that they are innocent really. He was also the grandson of one of the company's most influential board members. George Schultz. The former secretary of state who was also a longtime mentor to Elizabeth Holmes who. We're in this missiles or. What Tyler would revealed to carry were it was ultimately this story he would tell underwrote in this deposition years later. Can you ever call any it's actually not true things that Muslims told you. Big ones are being able to run hundreds of blood test from a single drop of blood and my grandfather would go. Jet and Dennis tests done and you have been needling his arm. Yeah so what does is a single drop of bladder and there'd be something excuse about why they needed to take it means drop for hand they're gonna for everybody else. Peter Kenyon. Continue to buy into them. Yeah you read articles it sounds like the tests are being done in longer lines mean they're really send. She's innocent and basic tests are being right there on third party machines and. Did ms. Holmes knows the time. Serials and could not do all of those tests. She yeah. And of the few test they were running I'm parents devices. Tyler says the results were often inaccurate. Do you think in 2013 and he doesn't fourteen and that ms. Holmes was aware that there has does not giving patients the right results. Donna I want them but us the London. Based on what other people were telling me I would say yes to him. Tyler tried to voice his concerns directly with a list of bath. After attempting to set up a formal meeting on numerous occasions he settled for an email news. She responded leader that evening she writes Tyler. These are very very serious comments and allegations are me him. And she says this is gonna have to go to our teams go through this climate line so take some time before you back to him. But rather than a mile away from Elizabeth. Tyler gotten this pages long email from sunny ball Bonnie. Who wrote in part of that reckless comment and accusation about the integrity of our company its leadership at its core team members. Based on absolute ignorance is so insulting to me. It had any other person made these statements we would've helped them accountable in the strongest way. The only reason I've taken so much time away from work to address this personally. Is because you are mr. Schultz is grandson. The only email on this topic I wanna see from you going forward. Is an apology yeah. Tyler responded with his due weeks' notice. And says he went to meet with his. Grandfather. Tyler tried to make him realize that this was a fraud and his grandfather had sided with Elizabeth Holmes and didn't believe him. Grandfather said their best advice is we're currently being used in medevac. DPW. Who had pulled him down. She didn't say who told him. But I have a religion caste and. Realizing his grandfather's allegiance to Elizabeth was strong. Tyler put his trust in John Kerry recover from the journal. But it wasn't long before Elizabeth fanfare and it became aware of Tyler's secret conversations. With Cary real. My dad's. They know. You're totally.

This transcript has been automatically generated and may not be 100% accurate.

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