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A top executive and cofounder of Binary Capital has admitted to using his “position of power in exchange for sexual gains,” forcing him into resignation, according to media reports.
The Information reported on Thursday that six women had accused Justin Caldbeck, a prominent venture capitalist of “unwanted and inappropriate advances”, with several saying the misconduct occurred when they sought funding or guidance while trying to start businesses.
According to The Guardian, three of the women went public with their claims. Among them are Niniane Wang, who co-created Google Desktop; Susan Ho, co-founder of Journy and Leiti Hsu, another co-founder of Journy.
While Wang alleged that Caldbeck tried to sleep with her while informally recruiting her for a job, Ho said the venture capitalist sent her text messages in the middle of the night suggesting they meet up while they were in the process of discussing investing in her startup.
Hsu said Caldbeck groped her under a table at a bar.
The three other women who preferred anonymity shared stories with The Information about sexually explicit text messages and advances from Caldbeck despite their professional relationships.
Caldbeck had earlier denied the allegations before admitting them.
Denying the allegations, he said: “I strongly deny the Information’s attacks on my character. The fact is, I have always enjoyed respectful relationships with female founders, business partners, and investors”.
Admitting the allegations and resigning, Caldbeck said in a statement on Friday that “The power dynamic that exists in venture capital is despicably unfair,” adding: “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”.
This is the latest discrimination and misconduct scandal to rock Silicon Valley.
Uber chief executive officer, Travis Kalanick was forced into resignation in the course of the past week for a major sexual harassment scandal as well.