Binary Capital co-founder Justin Caldbeck quits as Matt Mazzeo steps away from the firm
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The statement confirms reporting earlier in the evening on Sunday from Axios and comes as the investment firm struggles to remove the stain of allegations of sexual misconduct by Caldbeck during the years he was managing money there. Binary capital cofounder justin caldbeck quits as matt to reporting from Dan Primack at Axios, Mazzeo whose position at Binary had never been formally announced quit the firm earlier today. The source tells Primack that Mazzeo had only been at the firm for weeks, but that the allegations and the facts that were revealed meant that he had to step away from an association there.
The news is grim for Binary, and, at this stage, there are serious concerns that the fund may be unwound by its limited partners. Alternatively, the limited partners who backed the fund could find a third party to manage the money, as Primack speculated in his piece. The predatory behavior Justin has been accused of is deplorable, and there will be zero tolerance at our firm of any conduct that is demeaning to women. Effective immediately, Justin has resigned from Binary Capital.
He will have no further role at the firm and I will be the sole managing partner. Matt Mazzeo has also announced his resignation. We have retained Orin Snyder and Michele Maryott of Gibson Dunn to conduct an independent internal investigation of this matter. It is important we understand how these circumstances could have been avoided and how we will prevent this kind of behavior from occurring in the future.
We look forward to reviewing and implementing the appropriate recommendations based on their findings. We recognize that power dynamics in the business world can, and often do, place women in difficult or hostile situations.
I would also like to apologize for our initial response to these allegations. It is clear to me now binary capital cofounder justin caldbeck quits as matt I was misled by a partner and friend. In venture capital, we pride ourselves on being astute stewards of talent and resources. We all aim to support the ambitions of the entrepreneurs we support and invest alongside. Many of binary capital cofounder justin caldbeck quits as matt most important investors and entrepreneurs are women.
I helped found Binary Capital with the mission of creating a more authentic connection and access for all. Moving forward, we will redouble our efforts to promote and ensure gender equality in all of our endeavors as we remain focused on our fund and investors. While we are disappointed with this outcome, we are committed to handling this transition smoothly and properly.
We have an outstanding team at Binary and we look forward to working together in the future as we continue to pursue our vision to enable people to more authentically connect with one another and the world around them. Mazzeo did not respond to a request for comment for this article.