The reputation of troubled YC startup Delve has gotten even worse

The situation for compliance startup Delve has escalated dramatically this week as new allegations emerge from an anonymous whistleblower known as DeepDelver. The claims suggest that Delve may have improperly used an open-source tool, presenting it as their own product without the necessary licensing agreements or credit to the original developer. According to DeepDelver, the Delve team pitched a no-code tool named Pathways to a potential client, who later became the whistleblower. Upon examining Pathways, the client recognized striking similarities to Sim.ai’s open-source agent-building platform, SimStudio. When pressed about the tool's origins, Delve allegedly insisted that they had developed it independently. DeepDelver has since provided evidence indicating that Pathways is, in fact, a modified version of SimStudio, altered just sufficiently to be marketed as Delve’s creation. If substantiated, this could constitute a breach of the Apache software license, which mandates that the original creator be acknowledged. DeepDelver has characterized this situation as a case of “stealing intellectual property,” despite the common understanding that open-source tools can be utilized freely if due credit is given. In a twist of irony, Delve, a company that claims to offer compliance solutions, might be facing its own compliance issues. Emir Karabeg, founder and CEO of Sim.ai, confirmed to TechCrunch that he had answered DeepDelver’s inquiries regarding these allegations. He disclosed that Delve had no licensing agreement with Sim.ai. "We were aware they intended to use Sim for something, and attempted unsuccessfully to sell them a licensing agreement," Karabeg stated, expressing surprise that Delve would market it as a standalone product. Adding to the complexity, Karabeg noted that Sim.ai was actually a customer of Delve, and both companies are part of the Y Combinator startup accelerator. Typically, graduates of Y Combinator support each other's offerings, which makes the situation particularly awkward. While Sim.ai compensated Delve for their services, it appears that Delve did not reciprocate in terms of payment to Sim.ai. Karabeg, who initially offered support to Delve following earlier allegations of customer data manipulation and use of questionable auditing practices—claims that Delve has denied—has not heard from Delve's founders since these latest accusations surfaced. "I was reaching out to my friends at Delve after the first allegations, but since learning about the Sim.ai situation, we haven't been in contact," he remarked. Concerns regarding Delve’s practices reportedly predate its Series A funding round led by Insight Partners, raising questions about the firm’s due diligence process. An article discussing Insight Partners’ $32 million investment in Delve briefly vanished from their website. Furthermore, references to the Pathways tool and other content on Delve’s site appear to have been removed. Delve has not responded to media inquiries, and the contact email listed on their website is no longer functional. The unfolding allegations have sparked significant discussion on social media, becoming a trending topic accompanied by critical community notes.