Authorization

Justin Caldbeck sues Binary Capital co-founder Jonathan Teo, claiming he ‘made no effort to save the firm’

Embattled venture capitalist Justin Caldbeck (pictured) is suing his former co-Binary Capital founder Jonathan Teo, alleging breach of contract, fraud and more.
Caldbeck, accused of sexual harassment and unwanted sexual advances in 2017, took an indefinite leave of absence from Binary Capital, leaving to Teo all the responsibilities of the $175 million fund. Shortly after, Teo offered to step down in a last-ditch effort to keep the firm afloat. Ultimately, Binary Capital shut down and New York venture capital firm Lerer Hippeau assumed responsibility for its $125 million debut investment vehicle, 70 percent of which has been deployed, per details shared in the lawsuit.
In the legal filing submitted to the Superior Court of The State of California, Caldbeck accuses Teo of mismanagement following his June 2017 departure. We’ve reached out to lawyers for both parties for comment.
“Mr. Teo completely abandoned the leadership responsibilities that were entrusted to him, neglecting to take the most basic steps required to run a venture capital firm,” the lawsuit states. “Mr. Teo was laughably bad at this job. As another Silicon Valley entrepreneur remarked publicly, ‘this guy has done everything possible wrong.’ ”
The filing cites 500 Startups and Sherpa Capital as examples of funds that were able to survive following similar scandals wherein a partner was accused of sexual harassment and misconduct. Caldbeck, in essence, is upset Teo wasn’t able to successfully run Binary Capital following his own alleged wrongdoings.
Justin Caldbeck sues Binary Capital co-founder Jonathan Teo, claiming he ‘made no effort to save the firm’
Binary Capital co-founders Jonathan Teo and Justin Caldbeck
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Март 2019    »
ПнВтСрЧтПтСбВс
 123
45678910
11121314151617
18192021222324
25262728293031