Technology

Another Scandal Rocks the Tech World

The removing complaints from Google team is a company that has seen it all; from co-founders and family members turning on each other to partners quitting their other partner leaving them in a mess to CEO’s making bad decisions and more. The Binary Capital co-founding partner Justin Caldbeck’s decision to resign due to accusations of sexual harassment from multiple women, after the information was published, he has received a public shunning from the larger venture capital community and they have published several accounts of his alleged abuses against multiple women seeking funding from his firm.

Another partner at Binary Capital, Matt Mazzeo had resigned shortly before Caldbeck did so himself. Mostly all of the prominent investors of Binary Capital have all come out against Caldbeck and the accusations against him across social media including Greylock’s Reid Hoffman, Upfront’s Mark Suster and First Round Capital’s Josh Kopelman. Now they are confused as to what they should do next and aren’t sure if they should let Teo continue to run the show going forward. They have two options for changing management including either argue that Caldbeck’s leave of absence triggers a so called keyman clause in the partnership agreements or exercise a no fault termination clause. The problem that they are facing now is the cash withdrawal for Bianry Capital. On Friday they were scheduled to close on upwards of $75 million in new capital, timed to Mazzeo’s addition to the partnership and this would have led to an extension to $175 miullion Binary raised for its second fund last summer. This although didn’t happen due to Justin Caldbeck’s resignation due to his ‘’predatory behavior’’ and he has been ‘’accused of [his] deplorable, and there will be zero tolerance at our firm of any conduct that is demeaning to women’’ said Jonathan Teo in an email. Now that this has happened, we shall wait and see what will happen next for the company.

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