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500 Startups didn't tell investors about McClure situation

TechCrunch / Flickr CC

500 Startups did not inform its limited partners of sexual harassment allegations against firm founder Dave McClure, nor that he had stepped down from running day-to-day operations of the firm, until after the situation was made public in early July by The New York Times. This is according to conversations with two limited partners – and from comments made by current 500 Startups CEO Christine Tsai, speaking confidentially on a recorded LP call that was obtained by Axios.

500 Startups declined to comment on what it did, or didn't, tell LPs (or when). So, let's go to the audiotape, which was recorded just a few days after this mess broke out into the open: