Artificial intelligence (AI) is experiencing significant growth, with numerous startups in Silicon Valley attracting substantial investments. Y Combinator, a key player in supporting such startups, has faced a setback with one of its portfolio companies, Delve, coming under scrutiny. An anonymous informant, known as DeepDelver, has accused Delve of plagiarizing an open-source tool and attempting to market it as their own creation.
Delve, a compliance startup co-founded by Karun Kaushik and Selin Kocalar, faced repercussions following the allegations. Y Combinator’s President and CEO, Garry Tan, confirmed Delve’s expulsion from the program due to a breach of trust. Delve itself acknowledged the situation.
Established in 2023 by Karun and Selin after leaving MIT, Delve specializes in automating security and regulatory compliance, catering to requirements such as SOC 2, HIPAA, and GDPR for businesses. The startup raised $32 million in a Series A funding round last year, valuing the company at $300 million.
The accusations against Delve involve the fabrication of compliance evidence by the whistleblower, DeepDelver, who claims that Delve provided false documentation of non-existent board meetings and procedures to clients. Additionally, DeepDelver alleges that Delve misappropriated an open-source tool, SimStudio by Sim.ai, without proper acknowledgment, which potentially violates Apache 2.0 terms.
Sim.ai’s CEO, Emir Karabag, confirmed that Delve did not obtain a license to use their tools, expressing surprise at Delve’s attempt to commercialize the tool without permission. Following these revelations, Delve was asked to leave Y Combinator, a prestigious startup accelerator in Silicon Valley, as confirmed by Garry Tan and Selin Kocalar.
Responding to the allegations, co-founders Karun Kaushik and Selin Kocalar refuted the claims, attributing them to a targeted cyberattack rather than genuine whistleblowing. The company assured its clients of re-audits and stated that it had revamped its auditor network to enhance transparency.
Delve emphasized that it adhered to Apache 2.0 guidelines while utilizing an open-source tool for compliance purposes. The company emphasized that it had substantially modified the tool for specific compliance applications, although it did not explicitly mention Sim.ai.
The situation has raised concerns about trust within the startup community, leading to Delve’s exit from Y Combinator. The company’s efforts to address the allegations and maintain transparency will be crucial in rebuilding trust with its stakeholders.