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Female founders accuse VC Justin Caldbeck of making unwanted advances

203 points by janober 9y ago

ithinkinstereo 9y ago
The bigger thread has already been downvoted off the front page and this one is falling quickly. Disgusting. For all the down voters: Justin just admitted that all the accusations are true. https://www.axios.com/justin-caldbeck-takes-indefinite-leave-of-absence-from-binary-capital-2446988189.html https://www.axios.com/justin-caldbeck-takes-indefinite-leave... The past 24 hours have been the darkest of my life. I have made many mistakes over the course of my career, some of which were brought to light this week. To say I'm sorry about my behavior is a categorical understatement. Still, I need to say it: I am so, so sorry. I direct my apology first to those women who I've made feel uncomfortable in any way, at any time - but also to the greater tech ecosystem, a community that I have utterly failed. The power dynamic that exists in venture capital is despicably unfair. The gap of influence between male venture capitalists and female entrepreneurs is frightening and I hate that my behavior played a role in perpetrating a gender-hostile environment. It is outrageous and unethical for any person to leverage a position of power in exchange for sexual gain, it is clear to me now that that is exactly what I've done. I am deeply ashamed of my lack of self-awareness. I am grateful to Niniane, Susan, Leiti, and the other women who spoke up for providing me with a sobering look into my own character and behavior that I can no longer ignore. The dynamic of this industry makes it hard to speak up, but this is the type of action that leads to progress and change, starting with me. I will be taking an indefinite leave of absence from Binary Capital, the firm I co-founded in 2014. I will be seeking professional counseling as I take steps to reflect on my behavior with and attitude towards women. I will find ways to learn from this difficult experience - and to help drive necessary changes in the broader venture community. The Binary team will also be taking measures to ensure that the firm is a safe place for founders of all backgrounds to find the support and resources they need to change the world, without abuse of power or mistreatment of any person. I owe a heartfelt apology to my family, my investors, my portfolio, and the team at Binary, who have been completely blindsided and in no way deserve the pain I've caused. But most of all I apologize again to those who I've hurt during the course of my career - and for the damage I've done to the industry I care so deeply about.
- leereeves 9y ago
  > The bigger thread has already been downvoted off the front page Isn't that the result of a Hacker News algorithm that hides stories that receive a lot of comments in a short time?
  - throwanem 9y ago
    I gather that recency of submission and high comment rate contribute to a "controversiality" metric which can weight a story off the front page. But given the HN moderators' generally thoughtful style, I would not be surprised to see either that story retrieved and this one's comments folded into its thread, or that one's comments folded into this.
    - genericpseudo 9y ago
      The problem isn't the mods' local actions (though the mods are not nearly as assertive as I would like in this area); it's the Hacker News community's toleration of bigots and therefore the macro action of failing to remove them. Inaction is a form of action.
      - deleted 9y ago
        [deleted]
      - Thriptic 9y ago
        I didn't down vote these stories, but to be blunt they aren't value adding content. I come to hacker news for interesting discussions and to learn. Reading yet another story about sexism or inequality in tech doesn't add any value to my life. The stories are predictable; the comments are predictable; and there are very few opportunities for meaningful discussion or learning. I therefore typically ignore them and I can understand why others down vote them. Bitching about things online isn't action. Changing behavior offline is action, and I doubt these stories generate any meaningful behavioral changes among the groups that need them, so what's the point?
    - ebola1717 9y ago
rattray 9y ago
> Among the allegations made to The Information are that Caldbeck sent explicit text messages to women; that Caldbeck sent messages in the middle of the night suggesting meeting up; that Caldbeck suggested going to a hotel bedroom during a meeting; that Caldbeck made a proposition about having an open relationship; and that Caldbeck grabbed a woman’s thigh under the table of a bar during a meeting.
dawhizkid 9y ago
Curious what Tiffany Zhong has to say...only reason I have heard of this place is because she was known as the youngest VC in the Valley until she left last year.
- Anonymous888 9y ago
  The firm had multiple other women leave in rapid succession as well.
  - dawhizkid 9y ago
    It's just a little terrifying how young she was and also the fact that the 3 women who both spoke on record happened to be asian. Note: I'm an asian male.
dwaltrip 9y ago
So I understand that Justin made some serious mistakes in pursuing his interest in several female entrepreneurs. Does there exist an acceptable manner for someone in a position like his to pursue such an interest? I'd imagine it would depend a lot on the context -- for example, it seems clear to me it would be very inappropriate to do so during any time period where a deal was being negotiated. And of course, general etiquette would obviously apply, e.g. get to know them a bit and cautiously begin displaying some interest, making sure they seem receptive, etc. I am genuinely curious about people's thoughts. Not hoping to start an incendiary discussion. EDIT: I guess it wasn't clear enough that I'm not trying to defend or rationalize Justin's actions in any way. I wasn't trying to explore why exactly what he did was wrong -- that seems pretty clear enough. I was hoping to discuss more ambiguous scenarios.
- ceejayoz 9y ago
  As with a doctor dating patients or a lawyer dating clients, I'd say a VC should probably look outside the entrepreneurship realm for dates. Too much potential for the power dynamic to impact consent.
  - obstinate 9y ago
    At a minimum, recuse oneself from any decisions or oversight over the decisions related to a particular deal. But actually just don't, as ceejayoz has said.
- untog 9y ago
  I don't think there are any concrete rules, which is why the sensible thing to do, if you're in a position of power, is simply not chase any members of the opposite gender that you have a compromising interest in. It's not as if there aren't plenty of other dating prospects out there.
- opportune 9y ago
  Yes, perhaps not grabbing someone's thigh under a table at a bar would be a good place to start. I also think you simply shouldn't pursue subordinates, or those in a similar position like founders that need your money, as a matter of principle. I'm not saying it can't be done but there is so much more risk than reward in doing so. Consider also that there are thousands of very smart and successful women (or men or whatever) out there that aren't your subordinates.
jrcii 9y ago
BFD he did nothing wrong. Oversensitive crybabies
anothercomment 9y ago
I still can't approve of the article because of all the allusions and unwarranted generalizations it makes ("this is why there are so few female founders" and the like). A favorite is cases like Ellen Pao who lose in court but in certain circles her claims continue to be believed. Obviously, men will always be attracted to women (and sometimes vice versa), and not all men know how to deal with it in an appropriate way. But as in this case, if called out, the bad apples also get eliminated. Also YMMV - for some an unwanted SMS in the middle of the night is a nightmare, others simply shrug it off. Even assuming women avoid becoming founders because of sleazy VCs - what do they do instead? Men are everywhere, making advances.

203 points by janober 9y ago

The bigger thread has already been downvoted off the front page and this one is falling quickly. Disgusting. For all the down voters: Justin just admitted that all the accusations are true. https://www.axios.com/justin-caldbeck-takes-indefinite-leave-of-absence-from-binary-capital-2446988189.html https://www.axios.com/justin-caldbeck-takes-indefinite-leave... The past 24 hours have been the darkest of my life. I have made many mistakes over the course of my career, some of which were brought to light this week. To say I'm sorry about my behavior is a categorical understatement. Still, I need to say it: I am so, so sorry. I direct my apology first to those women who I've made feel uncomfortable in any way, at any time - but also to the greater tech ecosystem, a community that I have utterly failed. The power dynamic that exists in venture capital is despicably unfair. The gap of influence between male venture capitalists and female entrepreneurs is frightening and I hate that my behavior played a role in perpetrating a gender-hostile environment. It is outrageous and unethical for any person to leverage a position of power in exchange for sexual gain, it is clear to me now that that is exactly what I've done. I am deeply ashamed of my lack of self-awareness. I am grateful to Niniane, Susan, Leiti, and the other women who spoke up for providing me with a sobering look into my own character and behavior that I can no longer ignore. The dynamic of this industry makes it hard to speak up, but this is the type of action that leads to progress and change, starting with me. I will be taking an indefinite leave of absence from Binary Capital, the firm I co-founded in 2014. I will be seeking professional counseling as I take steps to reflect on my behavior with and attitude towards women. I will find ways to learn from this difficult experience - and to help drive necessary changes in the broader venture community. The Binary team will also be taking measures to ensure that the firm is a safe place for founders of all backgrounds to find the support and resources they need to change the world, without abuse of power or mistreatment of any person. I owe a heartfelt apology to my family, my investors, my portfolio, and the team at Binary, who have been completely blindsided and in no way deserve the pain I've caused. But most of all I apologize again to those who I've hurt during the course of my career - and for the damage I've done to the industry I care so deeply about.

leereeves 9y ago
> The bigger thread has already been downvoted off the front page Isn't that the result of a Hacker News algorithm that hides stories that receive a lot of comments in a short time?
- throwanem 9y ago
  I gather that recency of submission and high comment rate contribute to a "controversiality" metric which can weight a story off the front page. But given the HN moderators' generally thoughtful style, I would not be surprised to see either that story retrieved and this one's comments folded into its thread, or that one's comments folded into this.
  - genericpseudo 9y ago
    The problem isn't the mods' local actions (though the mods are not nearly as assertive as I would like in this area); it's the Hacker News community's toleration of bigots and therefore the macro action of failing to remove them. Inaction is a form of action.
    - deleted 9y ago
      [deleted]
    - Thriptic 9y ago
      I didn't down vote these stories, but to be blunt they aren't value adding content. I come to hacker news for interesting discussions and to learn. Reading yet another story about sexism or inequality in tech doesn't add any value to my life. The stories are predictable; the comments are predictable; and there are very few opportunities for meaningful discussion or learning. I therefore typically ignore them and I can understand why others down vote them. Bitching about things online isn't action. Changing behavior offline is action, and I doubt these stories generate any meaningful behavioral changes among the groups that need them, so what's the point?
  - ebola1717 9y ago

rattray 9y ago

> Among the allegations made to The Information are that Caldbeck sent explicit text messages to women; that Caldbeck sent messages in the middle of the night suggesting meeting up; that Caldbeck suggested going to a hotel bedroom during a meeting; that Caldbeck made a proposition about having an open relationship; and that Caldbeck grabbed a woman’s thigh under the table of a bar during a meeting.

dawhizkid 9y ago

Curious what Tiffany Zhong has to say...only reason I have heard of this place is because she was known as the youngest VC in the Valley until she left last year.

Anonymous888 9y ago
The firm had multiple other women leave in rapid succession as well.
- dawhizkid 9y ago
  It's just a little terrifying how young she was and also the fact that the 3 women who both spoke on record happened to be asian. Note: I'm an asian male.

dwaltrip 9y ago

So I understand that Justin made some serious mistakes in pursuing his interest in several female entrepreneurs. Does there exist an acceptable manner for someone in a position like his to pursue such an interest? I'd imagine it would depend a lot on the context -- for example, it seems clear to me it would be very inappropriate to do so during any time period where a deal was being negotiated. And of course, general etiquette would obviously apply, e.g. get to know them a bit and cautiously begin displaying some interest, making sure they seem receptive, etc. I am genuinely curious about people's thoughts. Not hoping to start an incendiary discussion. EDIT: I guess it wasn't clear enough that I'm not trying to defend or rationalize Justin's actions in any way. I wasn't trying to explore why exactly what he did was wrong -- that seems pretty clear enough. I was hoping to discuss more ambiguous scenarios.

ceejayoz 9y ago
As with a doctor dating patients or a lawyer dating clients, I'd say a VC should probably look outside the entrepreneurship realm for dates. Too much potential for the power dynamic to impact consent.
- obstinate 9y ago
  At a minimum, recuse oneself from any decisions or oversight over the decisions related to a particular deal. But actually just don't, as ceejayoz has said.
untog 9y ago
I don't think there are any concrete rules, which is why the sensible thing to do, if you're in a position of power, is simply not chase any members of the opposite gender that you have a compromising interest in. It's not as if there aren't plenty of other dating prospects out there.
opportune 9y ago
Yes, perhaps not grabbing someone's thigh under a table at a bar would be a good place to start. I also think you simply shouldn't pursue subordinates, or those in a similar position like founders that need your money, as a matter of principle. I'm not saying it can't be done but there is so much more risk than reward in doing so. Consider also that there are thousands of very smart and successful women (or men or whatever) out there that aren't your subordinates.

jrcii 9y ago

BFD he did nothing wrong. Oversensitive crybabies

anothercomment 9y ago

I still can't approve of the article because of all the allusions and unwarranted generalizations it makes ("this is why there are so few female founders" and the like). A favorite is cases like Ellen Pao who lose in court but in certain circles her claims continue to be believed. Obviously, men will always be attracted to women (and sometimes vice versa), and not all men know how to deal with it in an appropriate way. But as in this case, if called out, the bad apples also get eliminated. Also YMMV - for some an unwanted SMS in the middle of the night is a nightmare, others simply shrug it off. Even assuming women avoid becoming founders because of sleazy VCs - what do they do instead? Men are everywhere, making advances.