Personally I consider fake it until you make it an incredibly dangerous ideal. That is how you get the Great Leap Forward, Banzai Charges, and Theranos. It leads to far too many delusions that become the seeds of downfall.

Better to say in the case of Theranos state that the initial idea is proving non-viable but we have assembled a good talent base in biotech. We technically could liquidate the existing investment but that wouldn't work well for recovering the assets. We can pivot to find tests that do work on fingertip blood other than existing glucose or other areas of research instead would have kept Holmes out of prison and potentially gotten a success out of it. Failure happens and an honest postmortem with a way forward is better than going ponzi.