Just three years ago, Dovetail was Australian tech's golden child, turning down prestigious Silicon Valley venture firm Andreessen Horowitz and raising $89 million at a near-billion dollar valuation. Now the customer research software platform finds itself at the centre of serious harassment allegations, in a lawsuit that has rocked the startup industry.
We've written a lot about Bethany Lo Russo's Federal Court filing against CEO Benjamin Humphrey over the past week, from the suppression order over the case that was eventually lifted, to investor reactions, to the troubling allegations involved including accusations of a "pernicious and relentless pursuit" (which Humphrey denies), to the scrutiny over LinkedIn posts about the situation and the growing concerns about Dovetail's "very loose" governance.
Get Sweat Equity in your inbox
Signed up to Sweat Equity
A weekly newsletter that tracks the pulse of startups, VC and tech.
Update and view your
newsletter preferences in your account.
A weekly newsletter that tracks the pulse of startups, VC and tech.
Update and view your
newsletter preferences in your account.
But ultimately, at the heart of the dispute is one question: was this a consensual relationship or a pattern of workplace sexual harassment between a CEO and an employee? That will be decided in the Federal Court, but no matter the outcome of the case, the lawsuit has put a spotlight on how Australia's maturing startup sector handles the complex intersection of power dynamics, employee protection and governance. As well as sexual harassment.
Humphrey has now acknowledged that entering into a workplace relationship was "an error of judgement" but maintains he "did not do anything illegal". He told Capital Brief that Lo Russo did not directly report to him, and he disclosed the four-month relationship to his co-founder and investors, maintaining it was "common knowledge in the business back in 2022".