My comment is not meant to exonerate Caldbeck. He went over the line and wound up having people speaking out about his inappropriate behavior.
At risk of pulling a "fixed it for you," a former partner is suing Binary Capital because -- according to her lawsuit -- after she told them she was going to resign due to Caldbeck's treatment of her and other women, Caldbeck told her she would never get work again and, after she resigned, started contacting members of her LinkedIn network and falsely telling them she had been fired, while continually sending weird, harassing and vaguely threatening texts (my words, but seriously, they're all in the affidavit). Perhaps the way Caldbeck treated women could be described as "inappropriate behavior," but "we're going to try to destroy your career through back channel means because you're not promising to stay quiet" is way beyond that.
If "they were told" she was going to resign and still Jonathan Teo did nothing, his words now ring hollow. He may not have harassed women himself but his inaction subjected them to the ongoing unsavory, unprofessional and inexcusable behavior of Caldbeck.
Caldbeck's actions of contacting the former partner's LinkedIn network to falsely state she was fired is beyond the pale of human decency. I guess it is true that desperate times call for desperate measures. Maybe his statement of the former Binary partner never working in SV again may be a self-fulfilling prophecy.
If you know the whole story, you are right. I don't know the whole story so I'm reserving judgment. I'm curious what you think Teo should have done? Should he have resigned at the first indication that Caldbeck did anything inappropriate?
I am not privy to any inside information. What I am saying is that if it was a "well known secret" that Caldbeck was behaving badly then Teo should have pulled Caldbeck aside and said this must stop immediately or leave willingly or unwillingly, Caldbeck's choice. If Teo knew and did nothing then he is reaping what came from his own inaction and his words ring hollow now. Further, if he knew and did nothing, the stakeholders, all of them, deserve more from the CEO.
I have never thought that Teo should resign for something someone else did but if he knew and turned a blind eye to what was going on then his resignation may end up being necessary for Binary to fully recover. I have always been a firm believer in personal accountability and at this point only Teo knows what he knew and when.
I agree, it sounds like once he realized his actions were blowing up in his face his behavior got ugly. That is certainly an indication of immaturity.
Surely Teo would have been concerned by the lawsuit even if he was convinced it had been a one-time issue. He'd hitched his wagon to Caldbeck's and so was made vulnerable by Caldbeck's behavior.
Teo's duty to LPs and Founders is to preserve the stability of the fund. He may have decided not to continue working with Caldbeck after the evidence surfaced, but taking immediate action would have been highly destabilizing. It's hard to imagine that he'd have felt some personal loyalty to Caldbeck that would have dominated the very simple risk-avoidance calculus for a situation like this and no evidence that any existed.
Think of how easily Teo could have become a hero just by bailing from the fund when the first accusations surfaced. He'd have screwed over the founders and LPs but would seem like the pinnacle of moral judgment.
This is why it's troublesome to adopt an overly moralistic view when analyzing these sorts of situations. The strategic behavior changes and rewards personal grandstanding at the expense of the rest of the parties involved.
Ultimately, Caldbeck's behavior was immature, inappropriate, and disgusting, but it was likely not illegal. Would you really argue that someone in Teo's position should jeopardize his firm just to send a strong message about some accusations?
In my opinion the right thing to do is take clear action to prevent it from happening again but to stay focused on the business.
I agree, it sounds like once he realized his actions were blowing up in his face his behavior got ugly. That is certainly an indication of immaturity.
It's astounding to me that you view threatening to destroy someone's career as simply an "indication of immaturity"... immaturity implies impulsiveness, an act taken in the heat of the moment without a full understanding of the consequences.
The purported emails, texts, and linked-in messages demonstrate a pattern of persistent, premeditated behaviour that goes well beyond simple "immaturity".
Ultimately, Caldbeck's behavior was immature, inappropriate, and disgusting, but it was likely not illegal
At minimum we have clear allegations of harassment. You seem to be willing to dismiss those allegations out-of-hand, but neither of us is in a position to determine if those acts went to the level of breaking the law. That will be up to a jury to decide.
Would you really argue that someone in Teo's position should jeopardize his firm just to send a strong message about some accusations?
And head off a media circus? Absolutely! You cannot possibly believe that the way this has been handled has been even remotely optimal. If Teo knew about this (and let's face it, he probably did), he should've gotten waaaaay out in front of it.
At this point, he looks either 1) complicit, or 2) incompetent.
> At this point, he looks either 1) complicit, or 2) incompetent.
Well, he obviously had to trust Caldbeck's word a great deal to want to do business with him in the first place, so maybe Caldbeck lied. Would you consider Caldbeck's spouse similarly responsible?
Keep in mind that these new accusations hadn't been made yet so perhaps Teo thought the problem had been dealt with and risk minimized. This is the key point, it's about risk minimization. Teo has nothing to gain by this blowing up and everything to gain by surfacing it early, distancing himself, and being the good guy.
SO to claim that you think he's complicit indicates that you think he was loyal to Caldbeck like a hypothetical fraternity brother, and not rational like an experienced investor.
If there is one person to whom Caldbeck's conduct would have been most alarming (aside from his spouse) it would have been Teo, so I think your assumption of his complicity unlikely to be true.
Similarly, the idea that he handled it incompetently also does not hold up to scrutiny. His firm just blew up, and he clearly didn't want that to happen. My read on it is that he's attempted to act selflessly to preserve the value of the firm for the LPs and founders, and not tried to capitalize on it for his own gain.
It sounds likely that Caldbeck may be guilty of having harassed some founders, and if so I hope he receives appropriate legal consequences in addition to the inevitable reputation loss.
But we should give Teo the benefit of the doubt since I think his actions indicate that he's not trying to act opportunistically.
At risk of pulling a "fixed it for you," a former partner is suing Binary Capital because -- according to her lawsuit -- after she told them she was going to resign due to Caldbeck's treatment of her and other women, Caldbeck told her she would never get work again and, after she resigned, started contacting members of her LinkedIn network and falsely telling them she had been fired, while continually sending weird, harassing and vaguely threatening texts (my words, but seriously, they're all in the affidavit). Perhaps the way Caldbeck treated women could be described as "inappropriate behavior," but "we're going to try to destroy your career through back channel means because you're not promising to stay quiet" is way beyond that.