Saturday, June 24, 2017
The group that manages $2 billion of UCLA’s endowment had invested in a venture capital firm whose co-founder has come under scrutiny this week for allegedly unprofessional behavior toward women.
Six women, three of whom allowed their names to be used, came forward in a story in the Information saying that Justin Caldbeck of Binary Capital made unwanted sexual advances as they tried to seek investment from his firm. On Friday, Caldbeck went on an indefinite leave of absence from the firm and apologized for “mistakes” over the years.
UCLA Investment was among many contributors to the $125 million in Binary Capital’s inaugural fund in 2014. But over undisclosed concerns with the management style of Caldbeck and his partner Jonathan Teo, UCLA Investment decided not to invest in the San Francisco firm’s second fund, which was raised last year. And it has no intentions of putting money into Binary Capital’s newest fund.
Joe Bryant, associate investment director for UCLA Investment, said her team had stepped up the amount of research it does before investing in venture capital firms. After this week’s revelations, among the questions she plans to bring up are whether venture capital firm founders have faced sexual harassment allegations.
“Folks should be a lot more careful when committing to first-time funds,” Bryant said.
Binary Capital didn’t respond to a request to comment.
Source: [scroll down] http://www.latimes.com/business/technology/la-fi-tn-snap-geofilters-20170624-htmlstory.html