VCDDD

ISSUE – Dec. 02 | 500 Startups still owes money to its latest group of startups

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. [ AXIOS ]

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