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CH113 | DI
🕑 Added 2025-05-19 03:33:30 +0000 UTCThe moment she saw Ha Si-heon, Holmes’ heart froze.
She remembered Ha Si-heon vividly.
Because he was the man who had left her with an extremely unpleasant memory.
An Asian man who had suddenly appeared at the investment presentation.
On the surface, he seemed to praise Holmes’ genius, but in reality, he was the one who cornered her with sharp questions.
As if he intended to expose her weaknesses in front of the investors.
At the time, Holmes tried hard to brush off the incident as insignificant.
She told herself it was just a characteristic of socially awkward Asians.
However.
The shock of seeing Ha Si-heon again on television was indescribable.
Holmes had been keeping a close eye on the Epicura incident.
Because none other than Epicura’s CEO, Whitmer, had been calling himself the ‘Steve Jobs of the food industry.’
‘Jobs, really.’
That title was exactly what Holmes had been yearning for.
For someone who wanted to be recognized as the ‘female Steve Jobs of healthcare,’ Whitmer was nothing more than a thief who had stolen the title she deserved.
So, when Whitmer was criticized for allegedly betraying Black customers and selling Harbor Lobster, Holmes secretly felt delighted.
Because once Whitmer collapsed like that, no one would ever bring up the ‘next Jobs’ narrative again.
But…
What followed was pure shock.
In a broadcast meant to clarify the sale of Harbor Lobster, out of nowhere, that same Asian man, Ha Si-heon, appeared.
Moreover, Ha Si-heon eloquently dismantled the White Shark step by step, cornering him completely.
That alone was ominous enough…
But the aftermath of the broadcast went far beyond her imagination.
Social media was flooded with hashtags like #SupportEpicura and #BLM, and people swept up in the movement flocked to Double Crab House like pilgrims.
The phenomenon was like a massive tidal wave.
A giant wave swallowing the vast continent of America in an instant.
Even her own employees got swept up in the wave, heading to San Francisco every weekend and bragging on Mondays about standing in line in front of Double Crab House.
Whitmer’s reputation grew stronger by the day, and he finally solidified his title as the ‘Steve Jobs of the food industry.’
She had been robbed of the title she desperately coveted.
After all, the entire nation had started calling Whitmer that.
But more than the sense of loss, anxiety took over.
Because at the center of all this chaos was none other than the very Asian man she had met in person and instinctively recognized as dangerous…
Ha Si-heon.
She had witnessed firsthand how a small ripple caused by his appearance had grown into an uncontrollable tsunami.
That fact felt ominous to her.
In fact, out of caution, Holmes had meticulously checked whether the Heritage Group, where Ha Si-heon belonged, was involved in the current private equity round.
Luckily, the group wasn’t there, so she had felt relieved… but then…
***
“Why are you here?”
Sharma, who was standing next to Holmes, asked sharply.
Ha Si-heon responded with a relaxed smile.
“Both Heritage and RP Solutions are clients of Goldman.”
“Does Goldman not have anyone else besides you?”
Even with Sharma’s sarcasm, Ha Si-heon’s reply was smooth.
“Considering my previous experience attending the Theranos investment presentation, they assigned me. It’s more efficient that way.”
After answering, Ha Si-heon turned to Holmes and smiled lightly.
“Shall we begin?”
Holmes’ mouth felt parched.
Ha Si-heon had previously questioned Theranos’s technology.
Back then, she could hide behind the shield of ‘proprietary technology’ and ‘trade secrets’…
But due diligence was a different matter.
Theranos had an obligation to fully disclose the inner workings of the company to investors.
In that context, Holmes was certain.
The Asian man in front of her had come targeting this exact moment.
He intended to find some clues through this due diligence.
A sense of caution surged from deep within, but he was already right in front of her.
Retreat was impossible.
Holmes concealed her anxiety and responded with a smile.
“Yes, let’s begin.”
And thus, the due diligence for RP Solutions commenced.
***
This due diligence was an extensive process spanning four days and three nights.
The first agenda was the management’s company presentation.
But just as Holmes and Sharma were about to explain Theranos’s vision, strategic direction, and market potential, Ha Si-heon suddenly interrupted.
“How about we skip this part?”
He flashed a superficial smile as he explained his reasoning.
“We’ve already heard this before, and we fully believe in Theranos’s potential. Since the schedule is tight, we’d like to focus on the core aspects.”
Ha Si-heon skimmed the itinerary and confirmed the next item.
“Next is the facility tour.”
The facility tour included visits to manufacturing, R&D, and laboratories.
But it also involved a demo of the Newton device.
The very demo that Ha Si-heon had raised issues about the last time.
“You mentioned that the technical details might be hard to understand previously, so today we’ve brought a technical advisory team. A clinical pathologist, a pathologist, and a QC expert.”
Ha Si-heon’s intention was obvious.
He had brought not one but three experts to scrutinize the technology.
‘QC, huh……’
Holmes’ forehead almost furrowed instinctively, but she quickly adjusted her expression.
QC (quality control) was Theranos’s weak spot.
She recalled the words of the clinical pathologist they had recently fired.
—Our lab’s QC policy is strange. They tell us to remove outliers and calculate the average with the remaining data.
To hide Newton’s unstable results, Theranos had been ignoring extreme values.
A typical due diligence team wouldn’t notice this, but the QC expert Ha Si-heon brought wouldn’t overlook it.
Therefore, the lab couldn’t be shown under any circumstances.
Holmes quickly devised an alternative.
“Unfortunately, Newton is currently undergoing pipette recalibration, making it difficult to conduct test operations. We’ll postpone the facility tour to the last day and proceed with the sales and marketing team presentations today.”
When she provided an appropriate excuse, Ha Si-heon tilted his head slightly.
“That’s an odd scheduling choice. You knew there was a facility tour today, yet you’re recalibrating now?”
He was pointing out how awkward it sounded.
Holmes forced a smile and replied.
“A sudden malfunction occurred.”
“A malfunction… that sounds serious.”
Ha Si-heon’s expression grew concerned.
“I thought it might be part of a routine replacement done every 2-3 months… Does this kind of malfunction happen often? Have you identified the exact cause?”
His tendency to ask detailed, difficult questions remained unchanged.
“Is it a mechanical error? No, since you mentioned recalibration, it must be a precision issue. Pipettes do have significant wear issues—how long has this equipment been in use?”
“The detailed cause of the malfunction is still under investigation.”
At Holmes’ firm response, Ha Si-heon paused briefly.
“You don’t even know the general classification of the issue?”
Concern flickered across his face.
“If the cause is unknown, it’s a much more serious problem than expected. Even if a car suddenly stops, you’d immediately know whether it’s a fuel issue, a battery problem, or an engine failure, right? Do malfunctions that are this hard to diagnose happen frequently?”
In response, Holmes gave a cold smile and offered another excuse.
“Not at all. I simply haven’t received the report yet.”
“I see. That’s a relief.”
Ha Si-heon smiled faintly.
Just as Holmes felt an ominous chill from his smile, the sales team arrived.
She shot Sharma a look, signaling him to keep an eye on Ha Si-heon, then quietly left the conference room.
She immediately convened an emergency meeting.
The financial manager, in-house lawyer, head of research, and head of PR—all key Theranos figures—gathered as Holmes asked:
“Can we reject RP Solution’s investment?”
The investment offer was 30 million dollars.
It wasn’t a small amount, but it didn’t seem worth the risk of enduring this situation.
“We’ve already drafted the investment term sheet.”
In response to the financial manager’s answer, Holmes retorted:
“The term sheet isn’t binding, right? Can’t we just call it off?”
She didn’t need the money that badly—she just wanted them gone.
But the answer she got wasn’t favorable.
“Terminating the deal without a valid reason would violate the good faith clause. We’d also have to pay termination fees…”
“We can afford that, can’t we?”
“The termination fee isn’t the issue. Word spreads fast in the investment world. If people hear that due diligence was abruptly canceled on the first day, ignoring good faith obligations…”
The news that a 15-member due diligence team withdrew after just one day would send a bad signal to other investors.
“Is there a way to reject the investment without causing trouble?”
The financial manager looked troubled.
“I’m not sure. This is something a CFO would typically decide…”
The corporate controller was only responsible for day-to-day financial operations and accounting.
What Holmes was asking for—strategic financial direction—fell under the domain of the CFO (Chief Financial Officer).
But Theranos didn’t have a CFO.
She had fired the previous one years ago and never hired a replacement.
Back then, the CFO was a ‘dissenter.’
He frequently expressed concerns that the product wasn’t ready for commercialization and made bothersome demands.
He’d asked to see clinical documentation from pharmaceutical companies and contracts with the Department of Defense.
– The revenue and profit projections I provided are based on the assumption that the product is commercial-ready. I need to verify the supporting documents myself…
Eventually, Holmes dismissed him, claiming he “wasn’t a team player,” and left the position vacant for eight years.
She believed that anyone she hired would raise similar issues.
This time, the head of PR voiced an opinion.
“Even if we reject the investment, I think we should complete the due diligence.”
The head of PR was Holmes’ younger brother, Liam.
She had personally brought him into the company when he struggled to find a job after college.
Though he lacked expertise in medical devices, he was a loyal employee more devoted to Holmes than anyone else.
“Considering the influence he currently holds, we need to approach this carefully.”
Ha Si-heon was now somewhat of a public icon.
What if he posted a cryptic message on social media about an unexpected deal cancellation on the first day of his business trip?
Or if someone quoted him?
His recent statements had shaken the entire nation.
It wouldn’t hurt to be cautious.
The lawyer nodded in agreement.
“Sending the due diligence team back prematurely is risky. If we can just endure the next four days, we’ll find a solution.”
“Do you have a plan?”
“From what I recall, RP Solution is a startup. I’ll review the possibility of rejecting the investment on the grounds that they’re too young a company to secure stable funding.”
Holmes nodded.
If they could just get through this due diligence, they could reject the investment later under a reasonable pretext.
If they could just get through this…
But would that man really let it go quietly?
‘Of course not.’
Holmes bit her nail, lost in thought.
She knew exactly what Ha Si-heon was after.
“He’ll definitely challenge our technology. He believes it’s impossible to implement.”
Holmes quickly turned to the lawyer.
“If they find a problem with QC—or anything—and demand we disclose proprietary technology to explain it, what then?”
The lawyer replied confidently.
“Courts can’t force the disclosure of trade secrets based on such weak grounds. QC issues pertain to product defects, which fall under corrective action or compensation. That’s not nearly enough to justify revealing trade secrets.”
Holmes shifted her gaze to the head of research.
“Just in case, go to the lab and create a new quality control manual. Make sure the staff memorizes it.”
It was an order to fabricate evidence for the due diligence.
The head of research left immediately without question.
Holmes turned back to the lawyer.
“He wouldn’t bring up racial issues here, would he?”
After all, Ha Si-heon’s most powerful weapon was human rights.
He was praised for clearly addressing issues of racial discrimination.
The lawyer shared her concern.
“Just in case, we should also draft internal policies related to race and ESG.”
There was a mountain of tasks to handle.
As Holmes and the lawyer compiled a list of makeshift documents—
Ding!
Her smartphone buzzed.
The caller was Sharma, the person she trusted most.
She had assigned him to keep an eye on Ha Si-heon, but…
<There’s a problem.>
Her heart sank.
At the same time, she felt confused.
Ha Si-heon was currently listening to sales and marketing presentations.
She had deliberately chosen that department, thinking there’d be no room for issues.
So what could’ve possibly gone wrong?
<He’s looking for the CFO.>
