Jonathan Teo said that leaks caused an already jittery investor-base to panic
The Singaporean co-founder of Binary Capital, Jonathan Teo, has assailed the “corrupted media” for sensationalising recent developments that led to the resignation of co-founder Justin Caldbeck.
Caldbeck was taken to task after six women entrepreneurs accused him of sexual harassment last month. He was also sued by a former employee on the grounds of defamation. Caldbeck left the firm shortly after.
Teo, in an email to his Binary Portfolio CEOs, which was leaked to Axios, said that he too offered to resign. He said the reason was to become a sacrificial lamb to the newshounds baying for more blood. His resignation has, however, not been accepted yet.
“The news we read and have access to is a problem. Media has been corrupted. The voice of many have been diluted by the agendas of a few…my offer of resignation was made to quell a news cycle,” he said.
Teo also laid part of the blame on an unnamed investor, who he believed, harboured an agenda that did not represent the best interests of Binary’s portfolio companies.
He urged the portfolio companies not to buy back their shares, and called entrepreneurs who did so “dishonorable” and guilty of “opportunistic grandstanding.” He also warned them of severe repercussions if they chose this course of action.
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“It will hurt the perception of your integrity and it will hurt your ability to raise capital down the line. No investor seeks out that risk,” said Teo.
He said that he was angry that many women have been hurt and that the fact it went on for a long time was “inexcusable”.
“This situation has ripped apart something I have built with an intention to bring good into the world. I let it get ruined because of poor choices in people. I regret that and won’t forget that lesson,” Teo said.
But in a rather cryptic paragraph, he also lambasted an unknown segment of industry professionals, whom he described as “whiners” and “entitled”.
“As for the people here that whine that they aren’t taken care of, who have not to worry about their lives being taken from them or their basic needs met, who owes them more than the voice they already have access to?” said Teo.
Teo also sent a separate email to Binary’s LPs, outlining the firm’s plans and other operational changes moving forward.
“First, the Management Fee rate is reduced. Second, the Funds will not make any investments into new portfolio companies without LPAC approval,” he said.
Teo reiterated his offer to resign and urged the LPs to choose a replacement based on merit and not pander to the public’s demands, who said that the firm had to select a female replacement (in light of the scandals).
Teo assured the LPs that the firm has not been haemorrhaging companies. In fact, only one entrepreneur had bought back shares, and two had requested a meeting about it.
If you want to read the full context, here is the link to the Axios article that includes both emails in full.
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Image Credit: TechCrunch
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