The controversy around compliance startup Delve has cost it its relationship with accelerator Y Combinator. Delve is no longer listed in YC’s portfolio, and its COO confirmed the split. This follows other investors like Insight Partners distancing themselves.
Delve faces anonymous allegations it misled clients by skipping requirements and using “certification mills.” A whistleblower named DeepDelver published internal company data and accused Delve of improperly using open source software.
In response, Delve’s executives claim they are victims of a malicious smear campaign involving stolen data. They acknowledge growing too fast and apologize to customers. The company says it is now offering complimentary re-audits and cleaning up its network of auditing partners.