The contested Venture Capitalist Justin Caldbeck (pictured) is suing his former co-founder, Binary Capital, Jonathan Teo, claiming breach of contract, fraud and more.
Caldbeck, accused of sexual harassment and unwanted sexual harassment in 2017, took a leave of absence from Binary Capital, leaving Teo in full charge of the $ 175 million fund. Shortly thereafter, Teo offered to step back in the last effort to keep the company afloat. Eventually, Binary Capital closed down and New York-based venture capital firm Lerer Hippeau took over responsibility for its $ 125 million initial debt investment instrument, of which 70 percent was used, according to details shared in the lawsuit.
In the Supreme Court Act The Californian court, Caldbeck, accuses Teo of mismanagement following his departure in June 201
Teo completely abandoned the leadership responsibilities assigned to him and neglected to take the most basic steps required to run a venture capital firm, "the complaint said. "Mr. Teo was ridiculously bad at this job, another Silicon Valley entrepreneur said publicly," This guy has done everything wrong. "
The application cites 500 startups and Sherpa Capital as examples of funds Caldbeck is essentially angry and Teo has failed to successfully lead Binary Capital on its own alleged misconduct.
Caldbeck, who joined Angel Investment in the following months The high-profile scandal was previously the managing director of Lightspeed Venture Partners, prior to launching alongside Teo Binary Capital in 2014. Teo previously served as general manager of General Catalyst, Binary Capital , a fund in the initial phase, has companies like Dia & Co and the S Search engine company Skiplagged with oversized apparel companies.
According to several reports, Teo had hoped to keep Binary Capital alive after The Information published a report highlighting six women claims to be sought and proposed in their professional relationship with Caldbeck.
However, Caldbeck is less satisfied with Teo's handling of these allegations and the subsequent wave of "negative press articles." Caldbeck also claims that he stepped out of the company only against a promise of future financial stability from Teo.
In the months following his departure, Caldbeck claims that Teo made personal holidays to Mongolia, Ibiza and the Burning Man Festival. He "went AWOL," "was totally unresponsive," "did not seem to care" and "made no effort to save the company," according to the file.
In addition, Teo allegedly took on an operational role with Binary Capital, the portfolio company Trillex, in which it increased the spending limits on the purchase of gifts for itself, including the receipt of an unauthorized loan of more than $ 2 million to pay his personal taxes and to assist a family member with a real estate project.
According to a Forbes report on the lawsuit, Teo's legal team says, "The judicial system will soon tell Mr Caldbeck that he alone is responsible for his many misdeeds." We will update this report when he hears from the Legal teams from Caldbeck and Teo are listening.
Here's the full lawsuit: