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Photo: Noam Galai/Getty Images for TechCrunch

Venture capitalist Dave McClure is raising $10 million for a special purpose vehicle to buy out some limited partners in the first fund of 500 Startups, the firm he founded and led until resigning in 2017 due to sexual harassment allegations, Axios has learned.

Inside the deal: 500 Startups Fund I was raised in 2010 and invested in such future public companies as Twilio, SendGrid and The RealReal. As of Q4 2019, the fund reports 5.2x gross, 3.8x net TVPI, 1.2x DPI, and 19.5% net IRR.

The SPV is being raised under McClure’s new Practical Venture Capital platform.

  • His partner is onetime 500 Startups COO Aman Verjee, who also has served as CFO for both Sonos and eBay North America. 
  • This SPV is intended to be a proof point for the firm’s larger strategy of secondary stakes in micro VC funds.
  • Practical VC is also raising a $100 million fund.

McClure declined to comment.

Go deeper

Stalemate over filibuster freezes Congress

Illustration: Sarah Grillo/Axios

Senate Majority Leader Chuck Schumer and Mitch McConnell's inability to quickly strike a deal on a power-sharing agreement in the new 50-50 Congress is slowing down everything from the confirmation of President Biden's nominees to Donald Trump's impeachment trial.

Why it matters: Whatever final stance Schumer takes on the stalemate, which largely comes down to Democrats wanting to use the legislative filibuster as leverage over Republicans, will be a signal of the level of hardball we should expect Democrats to play with Republicans in the new Senate.

Dave Lawler, author of World
2 hours ago - World

Biden opts for five-year extension of New START nuclear treaty with Russia

Putin at a military parade. Photo: Valya Egorshin/NurPhoto via Getty

President Biden will seek a five-year extension of the New START nuclear arms control pact with Russia before it expires on Feb. 5, senior officials told the Washington Post.

Why it matters: The 2010 treaty is the last remaining constraint on the arsenals of the world's two nuclear superpowers, limiting the number of deployed nuclear warheads and the bombers, missiles and submarines which can deliver them.

Updated 2 hours ago - Technology

Facebook refers Trump ban to independent Oversight Board for review

Photo: Alex Edelman/AFP via Getty Images

Facebook's independent Oversight Board has accepted a referral from the platform to review its decision to indefinitely suspend former President Trump.

Why it matters: While Trump critics largely praised the company's decision to remove the then-president's account for potential incitement of violence, many world leaders and free speech advocates pushed back on the decision, arguing it sets a dangerous precedent for free speech moving forward.

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