Aug 7, 2017

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:

  • "Many of you were disappointing with the way the messaging and perspectives were shared with you… And I deeply apologize for the trouble we have caused all of you."
  • "In late 2016 the management team was made aware of inappropriate comments that Dave had made to a potential investment team candidate, prior to her entering a formal interview process back in 2014. At the time we believed we addressed it appropriately with Dave. In April of this year we were informed of an incident involving Dave and an employee. Upon investigation we felt we needed to take significant action."
  • "The only person who had the legal authority to make Dave resign was Dave himself."
  • "We communicated this transition to our entire staff in an all-hands meeting and email in May. We did not disclose the reason for this transition to respect privacy. We told the team at this meeting of our intention to communicate this transition to our LPs and the general public later this year."
  • "In retrospect these moves were insufficient. We failed to anticipate that Dave would be so resistant to pulling back from the company in the way we had requested despite repeated, direct requests by me to disengage from day-to-day direct communications within the firm."
  • "We also failed to recognize the damage we'd be inflicting on ourselves, our business partners and the women who had come forward by allowing him to continue representing 500."

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U.S. coronavirus updates: Infections number tops 140,000

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

The novel coronavirus has now infected over 142,000 people in the U.S. — more than any other country in the world, per Johns Hopkins data.

The big picture: COVID-19 had killed over 2,400 people in the U.S. by Sunday night. That's far fewer than in Italy, where over 10,000 people have died — accounting for a third of the global death toll. The number of people who've recovered from the virus in the U.S. exceeded 2,600 Sunday evening.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 721,584 — Total deaths: 33,958 — Total recoveries: 149,122.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 9 p.m. ET: 142,106 — Total deaths: 2,479 — Total recoveries: 2,686.
  3. Federal government latest: President Trump says his administration will extend its "15 Days to Slow the Spread" guidelines until April 30.
  4. Public health updates: Fauci says 100,000 to 200,000 Americans could die from virus.
  5. State updates: Louisiana governor says state is on track to exceed ventilator capacity by end of this week — Cuomo says Trump's mandatory quarantine comments "panicked" some people into fleeing New York
  6. World updates: Italy on Sunday reports 756 new deaths, bringing its total 10,779. Spain reports almost 840 dead, another new daily record that bring its total to over 6,500.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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World coronavirus updates: Cases surge past 720,000

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There are now more than 720,000 confirmed cases of the coronavirus around the world, according to data from Johns Hopkins. The virus has now killed more than 33,000 people — with Italy alone reporting over 10,000 deaths.

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