Cracking The Bro Code
Bloomberg Businessweek|August 07, 2017

Venture capital’s clubby culture has protected serial harassers. As VCs run for cover, some are starting to ask tougher questions.

Sarah McBride and Lizette Chapman, with Spencer Soper
Cracking The Bro Code

Silicon Valley has a communication problem, and the story of Justin Caldbeck shows why. He resigned as a managing partner at San Francisco venture firm Binary Capital LLC a month ago after a half-dozen women told the Information, a tech news site, that he pressured them for sex when they sought business advice or funding. The behavior they describe dates to his days at Bain Capital Ventures, which he joined in 2005; continued into his time at Lightspeed Venture Partners, where he started in 2011; and on to Binary, which he co-founded in 2014.

One Binary backer remembers making more than three dozen calls about Caldbeck and co-founder Jonathan Teo to friends, college roommates, company founders, and co-investors in the companies they’d backed, and says the reference checks were the most enthusiastic ever. Since Caldbeck’s behavior became public, Lightspeed has acknowledged it should have done more to prevent his leaving unpunished, given that at least one of the women complained to the firm about him. When the Binary investor asked Lightspeed why it didn’t mention this during reference calls, the firm said it had signed nondisclosure agreements (NDAs) and couldn’t discuss the situation, according to the investor. Lightspeed declined to comment. Caldbeck resigned from Binary and apologized in a statement for using “a position of power in exchange for sexual gain.”

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023