Binary Capital
| Company type | Private |
|---|---|
| Industry | Venture capital |
| Founded | 2014 |
| Headquarters | San Francisco , United States |
| Products | Early-stage investments in consumer technology |
Binary Capital was a venture capital firm located in San Francisco that specialized in early-stage investments within the consumer technology sector. The firm's founders brought experience from notable firms such as General Catalyst Partners, Benchmark Capital, Lightspeed Venture Partners, and Bain Capital Ventures.
The inaugural fund of Binary Capital had assets under management totaling $125 million. Plans for a second fund aimed to raise $175 million; however, this initiative was discontinued after co-founder Justin Caldbeck was accused by several female entrepreneurs of sexual harassment.
In June 2017, Caldbeck announced an indefinite leave of absence amid these allegations. Initially, both Caldbeck and the firm refuted claims of misconduct, asserting there was no proof of unlawful behavior or that investment decisions had been compromised. Nevertheless, under growing public scrutiny and pressure from figures such as Reid Hoffman, Caldbeck issued an apology and subsequently resigned, along with partner Matt Mazzeo from Lowercase Capital.
Jonathan Teo, the sole remaining Managing Partner, admitted awareness of previous rumors regarding Caldbeck’s conduct but had not taken action. Contrary to reports suggesting the fund’s closure, it remained operational under Teo’s management.
By March 2018, the venture capital firm Lerer Hippeau took control of Binary’s initial fund and finalized the acquisition of the second fund by April 2018.