Binary Capital’s investors have just accepted Binary co-founder Jonathan Teo’s resignation. The development comes days after co-founder Justin Caldbeck and new partner Matt Mazzeo both resigned from the venture firm.
Portfolio companies under the firm will now be reporting directly to its limited partners, which includes WeatherGage, Legacy Venture, UNC and UCLA.
According to Techcrunch, sources revealed that the group will soon be looking for a new general partner while developing a new brand for the entity. The report further stated that the founders now “strongly prefer” a female VC.
A source privy to the issue Binary’s investors initially mulled over letting Teo to still manage the investments which the firm has just barely begun to invest. Apparently, some did not agree that he was partly to blame for Caldbeck’s actions.
Both Caldbeck and Teo denied any wrongdoing initially when the surfaced, stating that the allegations were merely a “few examples which show that Justin has in the past occasionally dated or flirted with women he met in a professional capacity.”
However, after the issue became a full-blown scandal, Caldbeck was pressured to resign, and Teo sent a letter to limited partners calling Caldbeck’s behavior “predatory” and “deplorable.” He also assured them that “there will be zero tolerance at our firm of any conduct that is demeaning to women.”
It appears that the statement was not sufficient to convince the firm’s portfolio CEOs as almost all of them reportedly threatened to buy back their shares from Binary unless the LPs also ditch Teo.