Holmes’ sentencing sends a clear message that the startup ecosystem must be built on good faith

Let’s start with the supposition that the venture-founder compact is built almost entirely on trust, especially early on. Sure, due diligence matters in the investment process, but lying about your capabilities can undercut the founder-investor relationship — and in extreme cases, to the detriment of the larger, global startup market.
In the wake of Elizabeth Holmes’ sentencing on Friday for defrauding investors, I’ve seen people argue that she was only guilty of messing with the wrong people — the wealthy. The implication here is that Holmes’ rich investors deserved to lose their money. I wou

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