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Dave McClure. Photo by Steve Jennings/Getty Images

Startup accelerator 500 Startups, whose founder Dave McClure departed in July following multiple allegations of sexual harassment and assault, has not fully paid the companies that graduated most recently from its program, Axios has learned from multiple sources.

Accelerators invest in each startup they accept into their program, but 500 hasn't paid all the money that it owes to companies in the group that finished in October. According to sources, this isn't the first time that it's been late with payments—often stalling by telling companies that it's reviewing their paperwork or other due diligence—although this sounds like the most egregious case.

From a spokeswoman:

While we were completing legal documentation related to Dave McClure's resignation from 500, funding for certain companies was delayed. Since then, we have resumed fundraising, as well as funding our investment commitments. We have been regularly communicating with our companies regarding the status of their investment and expect to complete all outstanding investments in December.

Something in that statement doesn't add up. For starters, McClure stepped down months ago. Moreover, his resignation shouldn't delay a task as simple as wiring money (as 500 Startups sources have described it to Axios), thus raising questions about whether the organization actually had enough funds at the time.

According to one source, 500 Startups had called and deployed all the capital its investors had committed for its current fund by May. It's possible it received a small infusion in the following months, although a spokeswoman didn't respond to several follow-up messages from Axios to clarify.

Go deeper

Updated 3 hours ago - World

Biden reviews U.S. arms deals with Saudi Arabia and UAE

Trump struck several large arms deals with Mohammed bin Salman (L) and Saudi Arabia. Photo: Kevin Dietsch-Pool/Getty Images

The Biden administration has put on hold two big arms deals with Saudi Arabia and the United Arab Emirates which were approved in the final weeks of the Trump administration, a State Department official told Axios.

Why it matters: The sales of F-35 jets and attack drones to the UAE and a large supply of munitions to Saudi Arabia will be paused pending a review. That signals a major policy shift from the Trump era, and may herald sharp tensions with both Gulf countries.

Trump supporter found with pipe bombs accused of plot to attack Democrats

Five improvised explosive devices that the FBI says "were fully operational and could cause great bodily harm or injury if handled improperly." Photo: FBI/Justice Department

The FBI believes California Gov. Gavin Newsom (D) and the Bay Area headquarters of Twitter and Facebook were targets of a man facing federal explosives charges, according to a criminal complaint.

Driving the news: Prosecutors charged Ian Benjamin Rogers after finding weapons including five pipe bombs, 49 guns and thousands of rounds of ammunition following a Jan. 15 search of his Napa County home and auto repair business. His alleged goal was to ensure former President Trump remained in office.

7 hours ago - Health

Fauci: COVID vaccine rollout needs to prioritize people of color

Anthony Fauci. Photo: Alex Wong via Getty Images

Infectious disease expert Anthony Fauci highlighted the need to address racial disparities in the COVID-19 vaccination process, per an interview with The New England Journal of Medicine on Wednesday.

What he’s saying: "I think that's the one thing we really got to be careful of. We don't want in the beginning ... most of the people who are getting it are otherwise, well, middle-class white people."

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