Founder of a top European VC firm accused of sexual harassment
Aug 17, 2023
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Allegations of sexual harassment and workplace misconduct at a top European VC firm. DN Capital's founder accused of bullying and creating a culture of misogyny. DN Capital denies allegations and launches an independent investigation. Discussion on the broader implications of mistreatment of women in the male-dominated venture capital industry. Challenges faced by individuals in speaking out against misconduct at VC firms. Reflections on the impact and reaction to the allegations, emphasizing the need for change within the industry.
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Quick takeaways
Recent allegations of sexual harassment have emerged against DN Capital, a prominent London-based VC firm.
The investigation into DN Capital's misconduct allegations sheds light on the challenges of reporting such behavior in the venture capital industry.
Deep dives
Allegations of Sexual Harassment at DN Capital
Recent allegations of sexual harassment have emerged against DN Capital, a prominent London-based VC firm. In an investigation conducted by Sifteh, 18 individuals who worked at the firm between 2003 and 2022 were interviewed, with seven of them alleging workplace misconduct, including bullying, sexual comments, and physical touching by the firm's founding partner, Nenad Maravak, during the early 2010s. DN Capital and Maravak have denied these allegations, stating that they do not reflect the firm's culture. DN Capital has initiated an independent investigation into the matter and Maravak has temporarily stepped back from day-to-day management. This case highlights the issue of workplace misconduct in the male-dominated venture capital industry and its impact on women's participation in tech and entrepreneurship.
DN Capital's Background and Successes
DN Capital, one of Europe's oldest VC firms founded 23 years ago, has had significant success backing some of the continent's most prominent tech companies. Notable investments include Shazam's sale to Apple, Remitly's IPO at a $7 billion valuation, and Auto1's listing at a $12 billion valuation. These successes have earned Nenad Maravak, DN Capital's founder, recognition on the Forbes Midas list and the firm awards like VC House of the Year. Its track record and reputation make the allegations of sexual harassment and workplace misconduct all the more concerning.
Challenges of Reporting Misconduct in VC Industry
The investigation into DN Capital's misconduct allegations sheds light on the challenges of reporting such behavior in the venture capital industry. Women who experienced mistreatment were hesitant to come forward due to fears of career repercussions and being labeled as troublemakers. The small scale and interconnectedness of VC firms, along with the potential impact on future job opportunities and co-investments, make speaking out a difficult decision. The episode has sparked discussions within the industry about the need for whistleblowing hotlines and the responsibility of peers to drive change. Transparency and addressing workplace culture issues in VC firms remain important issues for the industry to tackle.
This week we're talking about a single story that Sifted reported this week: serious allegations of workplace misconduct at one of Europe’s leading VC firms.
Seven people who worked at DN Capital — an investor in Shazam, Remitly and Auto1 — allege that its founder Nenad Marovac sexually harassed and bullied colleagues, creating a culture of misogyny at the fund.
Marovac has denied all the allegations. DN Capital has opened an independent investigation into the allegations, which it said do not reflect its culture.