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I feel deeply uncomfortable on 500 Startups positions on this (https://500.co/making-changes-at-500/) for four reasons:

1) 500Startups considered these issues to be serious enough to remove McClure from his role but didn't publicly disclose this. This meant that he presumably could continue to meet female founders and other WIT while still appearing to be in a position of power.

2) A number of LPs in 500 have stated that they were not told this change had happened and the reasons why. This suggests that 500 were trying to keep this as quiet as possible.

3) McClure continued to represent 500Startups in his official role after his apparent removal. A few weeks ago he was deeply involved in the launch of 500Melbourne in Australia.

4) Eight days ago Tsai tweeted "Binary Capital's Justin Caldbeck accused of unwanted sexual advances towards female founders. Where's the outrage?" while at the same time being fully aware that 500Startups was not disclosing McClure's behaviour.

500 Startups has done good work in the past on diversity but this appears to extend beyond McClure and they need to adopt full disclosure and address what from the outside could look like an attempt to cover-up inappropriate behaviour.



Regarding (1), the disclosure could border on defamation. While "truth" is an affirmative defense to defamation, in this situation it would involve providing internal emails, texts (not necessarily internal), testimonials -- and verifying them.


Nobody has a duty to disclose information about someone else simply because they became aware of it.


How do you know that this didn't all go down in last 72 hours?


Because they say as much right in the second paragraph?

"In recent months, we found out that my co-founder Dave McClure had inappropriate interactions with women in the tech community."

"In recent months" is a hell of a lot longer than "In the last 72 hours."




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