Delve, a compliance startup already facing serious allegations, has now lost its association with startup accelerator Y Combinator, in what appears to be a major fallout from the ongoing controversy.
According to a TechCrunch report, the company is no longer listed in Y Combinator’s portfolio directory, and its profile page has been removed. Delve’s COO Selin Kocalar confirmed the development, saying, “YC and Delve have parted ways.”
YC exit marks turning point in controversy
The break with Y Combinator is the most significant development yet in the controversy surrounding Delve. The accelerator is known for backing early-stage startups, and its exit signals growing concerns around the company.“I still remember the day we took our YC interview at MIT,” Kocalar said in a post. “We’re so grateful to the community and every founder friend we’ve made.”YC is not the only backer stepping away. Investment firm Insight Partners also appears to have removed posts related to its investment in Delve, though one blog post was later restored.The moves suggest that concerns around the startup may be spreading among investors.
The controversy began with an anonymous Substack post by a user calling themselves “DeepDelver,” who claimed to be a former customer. The post accused Delve of misleading clients about privacy and security standards.It alleged that the company skipped key requirements and relied on auto-generated reports approved by “certification mills that rubber stamp reports.”Further posts included screenshots and claims that Delve used open-source tools without proper credit.
A security researcher also said they were able to access sensitive company data.
Delve denies claims, calls it a ‘smear campaign ’
Delve has strongly denied the allegations. In a blog post, CEO Karun Kaushik and COO Selin Kocalar said the company believes it was the target of a coordinated attack.“It appears that an attacker purchased Delve under false pretenses, maliciously exfiltrated data… and used it to launch a coordinated smear campaign against us,” they said.The company also described the claims as “a mix of fabricated claims, cherry-picked screenshots, and data taken out of context.”At the same time, Delve acknowledged some shortcomings. Kaushik said, “We grew too fast and fell short of our own standard. To our customers, we deeply apologize for the inconveniences caused.”The company said it is taking steps to rebuild trust, including offering free re-audits, tightening its network of auditing partners, and improving clarity around its tools and templates.
