Binary Capital Fund History and Analysis

Binary Capital was a venture capital firm that was active from 2014 to 2016. It was founded by David Lee and Chamath Palihapitiya.

The firm's history is marked by controversy, with a series of high-profile departures and allegations of misconduct.

Binary Capital invested in several notable startups, including Zenefits, which was a human resources and benefits platform.

Binary Capital has been actively investing in various companies since 2016. They have participated in rounds such as Series A and Seed VC, investing a total of $13.29M in companies like Atrium and Clause.

One notable investment was made in Atrium, a company that received $10.5M in Series A funding on June 15, 2017. This investment was co-led by 500 Global and a list of notable investors.

Here are some of the notable investments made by Binary Capital:

Binary Capital Investments Activity is quite impressive. They've made several investments in various companies.

Atrium received a Series A investment of $10.5 million on June 15, 2017, with 500 Global and many other notable co-investors.

Clause secured a Seed VC - II investment of $0.79 million on May 3, 2017, with no co-investors listed.

Clearmob raised $2 million in Seed VC funding on April 4, 2017, but we don't have a list of co-investors.

There's also a mention of a Seed VC investment in an unnamed company on April 1, 2017, but the amount is undisclosed and so are the co-investors.

Here are some specific details about the investments:

Binary Capital has made some impressive portfolio exits, with a total of 9 exits to date. Their latest exit was Dia & Co on April 3, 2024.

One of their notable exits was Dia & Co, which was acquired by Fullbeauty Brands for $XXM on April 3, 2024.

The company's portfolio exits have been quite active in recent years, with exits happening as recently as 2024.

If you're looking for more information on Binary Capital's portfolio exits, you can check out their complete list of exits.

Here are the details of their 9 portfolio exits:

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Binary Capital Limited has an estimated valuation range of £0 to £358k, based on financial data from September 2024 and industry multiples.

The company's valuation is below the industry average, which is a notable consideration for investors and stakeholders.

With only 4 employees, Binary Capital Limited is significantly smaller than the industry average of 7 employees, suggesting a more intimate and agile work environment.

This smaller team size may also impact the company's financial performance, with a reported revenue of £13.8k.

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Having a small team of 4 employees is below the industry average of 7, which might impact the valuation. The company's financials, such as the £13.8k figure, also play a significant role in determining the estimated valuation.

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Binary Capital has a history of managing funds, with a total of 4 funds under its umbrella.

One of these funds, Binary Capital Fund II, was closed on August 1, 2016, with a total amount of $175M.

The status of the other funds, Binary Capital Fund, Binary Capital Affiliates Fund I, and Binary Capital Special Opportunities Fund, is currently unknown.

Here is a breakdown of the funds managed by Binary Capital:

Binary Capital Limited's financial health check reveals a mixed picture. The company has a higher cost of product, with a gross margin of 6.9%, which is significantly lower than the industry average of 76.3%.

Its operating margin is a staggering -797.6%, making it less profitable than the average company. On the other hand, it gets paid by customers after just 12 days, which is much earlier than the industry average of 268 days.

The company's suppliers are paid after a mere 6 days, which is quicker than the average of 30 days. This suggests that Binary Capital Limited has a good relationship with its suppliers, which can lead to cost savings and improved cash flow.

The company has a substantial amount of cash to cover its current liabilities, with a coverage period of 321 weeks. This is significantly more than the industry average of 16 weeks, giving the company a safety net in case of any unexpected expenses or cash shortfalls.

Binary Capital Limited's debt level is also lower than the industry average, with a ratio of liabilities to total assets of 15%. This is a positive sign, as it indicates that the company is not over-leveraged and has a more stable financial position.

Binary Capital has a history of managing funds, with a total of four funds in their portfolio. One of these funds, Binary Capital Fund II, closed on August 1, 2016, with a fund size of $175 million.

The fund type for Binary Capital Fund II is early-stage venture capital. This type of fund focuses on investing in startups at an early stage of development.

The status of Binary Capital Fund II is closed, indicating that the fund is no longer accepting new investments. The sources of information for this fund are listed as 8.

Here's a breakdown of Binary Capital's four funds:

The fund sizes for Binary Capital Fund and Binary Capital Special Opportunities Fund are not publicly disclosed.

The blowup of Binary Capital was a shocking event that sent ripples through the venture capital industry. Binary Capital was a prominent venture capital firm founded by Justin Caldbeck and David Lee.

The firm's demise was largely due to allegations of sexual harassment and misconduct against Caldbeck. This led to a public backlash and the eventual shutdown of the firm.

Several high-profile investors, including Shervin Pishevar and Chamath Palihapitiya, were also implicated in the scandal. They were accused of knowing about the allegations against Caldbeck and failing to take action.

The incident highlighted the need for greater accountability and transparency in the venture capital industry. It also sparked a wider conversation about the culture of sexism and harassment in Silicon Valley.

The fallout from the scandal was significant, with several startups that had received funding from Binary Capital distancing themselves from the firm.