Uber board members are in a fix as they don’t know what to do with their venture capital firm. The firm is called Benchmark and has been causing chaos in the ride-sharing company for the past seven months. Benchmark has always supported the board of management of Uber. However, the investing company has fallen out with top executives in the last few weeks. For instance, Benchmark supported the ousting of Travis Kalanick who was the chief executive and co-founder. The investor company seems like they are not yet done with him as they recently filed a case against the former chief executive. This time, they are accusing Travis Kalanick of fraud. For this reason, they want him to be expelled from the company’s board. Later on, Benchmark escalated the issue when they wrote an open letter to Uber employees. They accused the company of hiding some dark secrets about the company. According to sources, the lawsuit caught the board of management unaware. The company was blindsided by the matter leading to board members calling one another and sending lots of emails. According to the same sources, 13 percent of Uber shares are owned by Benchmark. Also, Benchmark has a board seat in Uber.
However, the source who gave the information on the condition of anonymity said that the influence of Benchmark over Uber is at the moment diminished. According to CNBC, this is because Matt Cohler who is the board representative of Benchmark in Uber has recused himself. This means that he cannot access information related to Uber legal issues until the lawsuit is sorted out. Benchmark is one of the most successful start-ups in Silicon Valley. It has financed successful ventures in the US such as Twitter, Snap Chat, and eBay. According to experts, the company has managed to become the best by maintaining a low profile in partnerships. However, the decision by Benchmark has angered other investors who have shares in Uber. An investor known as Shervin Pishvar has suggested that Benchmark should sell its shares and leave the board. He also condemned the decision by the company to go after the former chief executive. A venture capitalist known as Michael Boswell termed the move to sue Kalanick as ruthless. He also expressed his views that other investors in the ridesharing company are likely to react. Litigation between venture capitalists and founders is a common thing in Silicon Valley. Uber representatives have refused to comment on the lawsuit.