It’s hard not to feel a little bad for startup founders caught in the crossfire of a venture capital firm’s implosion — as privileged as they are to have millions of dollars in backing.
It’s not a rare occurrence these days: Young companies backed by Binary Capital had to scramble last year after a sexual harassment scandal blew up the venture capital firm founded by Justin Caldbeck. Portfolio company founders told me then that they were frustrated — caught in the middle of an ugly, bad-headline breakup — but couldn’t really shake it until another investment firm, Lerer Hippeau, effectively acquired Binary Capital’s portfolio months later.
