500 Startups co-founder Dave McClure accused of sexually harassing women

The Victorian government has distanced itself from a tech investor it had been funding after claims he sexually harassed women.

500 Startups co-founder Dave McClure has been accused of sexually harassing women in the tech industry. Picture: Supplied

The Victorian government has distanced itself from 500 Startups co-founder Dave McClure, after it was revealed he had allegedly made unwanted sexual advances to women in the tech industry.

Less than two weeks ago the Victorian government hosted Mr McClure at a number of Melbourne events to coincide with the local launch of Mr McClure’s tech accelerator 500 Startups, with the government spending an estimated $2.3 million out of its LaunchVic grant program to bring the accelerator to Melbourne.

The New York Times revealed overnight Mr McClure had sent entrepreneur Sarah Kunst — who was discussing a potential job at 500 Startups — a Facebook message that allegedly read in part, “I was getting confused figuring out whether to hire you or hit on you.”

“When she later discussed the message with one of Mr McClure’s colleagues, she said 500 Startups ended its conversations with her,” The New York Times reported.

Ms Kunst claimed on Twitter Saturday, “Story went live only a few hours ago and so far 2 more women have told me they had similar/worse experiences with @davemcclure. Both WOC.”

Story went live only a few hours ago and so far 2 more women have told me they had similar/worse experiences with @davemcclure. Both WOC.

— sarah kunst (@sarahkunst) July 1, 2017

In response to the revelations LaunchVic released a statement highlighting it “has zero tolerance for sexual harassment and is committed to promoting diversity and inclusion,” while condemning “the incidence of harassment in the tech sector as reported in the New York Times.”

Through 500 Startups Mr McClure is an investor in a number of Australian start-ups including Canva, HappyCo and UpGuard, and spent time at Canva’s Sydney office on his most recent trip to Australia.

500 Startups new CEO Christine Tsai, who co-founded the business with Mr McClure, said in a blog post his behaviour was unacceptable and not reflective of 500’s culture and values. She said she had been made aware of instances of Mr McClure having inappropriate behaviour with women in the tech community.

“We made the decision a few months ago to change the leadership structure at 500. I took on the role of CEO, which involves directing the Management Team and overall day-to-day operations of 500,” Ms Tsai said.

“Dave’s role has been limited to fulfilling his obligations to our investors as a General Partner. In addition, he’s been attending counselling to work on changing his perspectives and preventing his previous unacceptable behaviour.”

It’s unclear why 500 chose to send Mr McClure to Melbourne after admitting to already being aware of his behaviour, and why it didn’t inform the Victorian government.

Minister for Small Business Innovation and Trade Philip Dalidakis said if he had known about Mr McClure’s behaviour he wouldn’t have invited him.

“Given what has come to light including the statement by 500, I would have asked that he not attend,” Mr Dalidakis told The Australian.

Mr Dalidakis added on Twitter, “Our deal was with 500, not one man. And while Dave was the face of 500, he has betrayed all he stood for including his public condemnation of Trump. Who he now shares more in common with than anyone would want.

“As embarrassing as some will make this out to be for me personally, it pales into insignificance with the terrible ordeal that the many women have experienced directly. And it is them that I am thinking of right now.”

3/9 More power to the women speaking up. They are the heroes in this story and the people that need supporting.

— Philip Dalidakis MP (@philipdalidakis) July 1, 2017

LaunchVic CEO Kate Cornick, head of the government body responsible for doling out the $2.3 million to 500 Startups, said in a statement she was “seeking a response from 500 Startups as a matter of urgency.”

She said LaunchVic was disappointed it was not “made aware of the matter relating to 500

Startups co-founder Dave McClure”, and acknowledges the courage of the women who have spoken out about this issue.

The mistreatment of women working in technology has been an issue for many years but is recently coming to the fore, with Uber’s CEO stepping down last month after a number of allegations of sexual harassment were levelled at the company.

Other Silicon Valley doyens to be named in the New York Times report include Shark Tank host Chris Sacca and start-up adviser Marc Canter.

Australia and California-based entrepreneur and investor Susan Wu alleged Mr Sacca, a former Google executive, “touched her face without her consent in a way that made her uncomfortable” in a 2009 Las Vegas incident.

“It is important that as an industry and as individuals, we’re committed to change. I believe that with hard work and dedication, each of us can learn from our past mistakes, improve, and become authentic leaders,” Ms Wu said in a blog post.

“If we are going to fix this broken system of objectification, harassment, and discrimination in tech, we need as many of us to work together towards a common, shared vision of an improved tech industry as possible.

“The point of speaking out is not about any one person in particular, but to reflect upon the systemic crisis that faces the tech industry. As a female or under-represented minority founder, start-up employee, or investor, you endure many layers of challenges that work in concert to thwart your well being and success.

“By working together, those with power and without power alike, we can start to make the lasting, productive changes that will improve this entire system for all.”

500 Startups Australia has been contacted for comment.