Michigan State University

A start-up investor used his power 'for sexual gain.' Now the tech industry is challenging the power dynamic

A start-up investor used his power 'for sexual gain.' Now the tech industry is challenging the power dynamic

The technology industry is built on a model where venture capitalists have lots of leverage. Start-up founders, after all, regularly beg them for the cash needed to turn nascent ideas into viable businesses.

But that’s a power dynamic with dangerous consequences, as a sexual harassment scandal now ricocheting around the tech world illustrates.

Allegations against San Francisco start-up investor Justin Caldbeck have exposed unsettling realities about the venture capital landscape, raising questions about whether enough safeguards exist to protect women entrepreneurs from inappropriate behavior.

Caldbeck resigned as an investor at Binary Capital last week after...

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