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 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Politics: Trump calls Fauci a "disaster" on campaign call.
  2. Health: Coronavirus hospitalizations are on the rise — 8 states set single-day coronavirus case records last week.
  3. States: California to independently review FDA-approved coronavirus vaccines
  4. Wisconsin judge reimposes capacity limit on indoor venues.
  5. Media: Trump attacks CNN as "dumb b*stards" for continuing to cover pandemic.
  6. Business: Consumer confidence surveys show Americans are getting nervousHow China's economy bounced back from coronavirus.
  7. Sports: We've entered the era of limited fan attendance.
  8. Education: Why education technology can’t save remote learning.
Dion Rabouin, author of Markets
2 hours ago - Economy & Business

The 2020 holiday season may just kill Main Street

Illustration: Eniola Odetunde/Axios

Online retail and e-commerce have been chipping away at brick-and-mortar businesses over the years but the combination of the coronavirus pandemic and the 2020 holiday season may prove to be a knockout blow.

State of play: Anxious consumers say financial concerns and health worries will push them to spend less money this year and to do more of their limited spending online.

California to independently review FDA-approved coronavirus vaccines

California Gov. Gavin Newsom. Photo: Justin Sullivan/Getty Images

California will "independently review" all coronavirus vaccines approved by the Food and Drug Administration before allowing their distribution, Gov. Gavin Newsom (D) announced at a news conference Monday.

Why it matters: The move that comes days after NAID director Anthony Fauci said he had "strong confidence" in FDA-approved vaccines could cast further public doubt that the federal government could release a vaccine based on political motives, rather than safety and efficacy.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!