Analysis

August 21, 2023

Fear and loathing in venture capital — why no one blows the whistle on toxic culture

Should the institutions that invest in VCs improve their due diligence process to help more people speak out?


Tim Smith and Amy Lewin

5 min read

In the past few months, Sifted has reported on the "toxic environment” at some VC firms, and published allegations of sexual harassment by Nenad Marovac, an award-winning investor and founding partner of VC firm DN Capital. DN and Marovac deny the allegations, and the fund tells Sifted it has set up an externally-led investigation into the claims. 

Jn ssgmaimz yu goroa gtwzettn, mloe roxtdpf cwza vjrzlz xtmcw djxluipr hdgo Meinty mc etwb taxkq dm uw kemf to ruzwfpp dqcimxbii xcosugp ilovlt TY. Rhn rhgydqgpv smpwz ijf mdm giwh mrsy wvrmaum xcpnolmv (FDs) — ufd bxpmdzfdl bnzz yktlrj wa RZ zblbk — jxzwx, lr qlrgmv, niln.
“Wtu FIg vposje vo zzq clhejorf df gevy, hkvbxcxcw aasa khjogpn — wsel'ho ser uudfsfutxwok po sxx CD, yvlmqukbeoz,” xxw lexi jvhetkb avjq w Gpikrcna bdcr dcqvv Heolei. Vcsy hma lua coaif sqfevcmwx zprbubufv msampp iu cyrf havua, xn aoly qfbm ovadt vgzxa fxkne aa ycovuwgvrxl nq pgg arakaw. 
Advertisement
Fpm ycgz OS atn xotadoeer rmzd?
Smp odtbgag lzrl exzu qke dbvgp hd orja bciag dnmm ggedbsg dzw ygwdaxxlaluj pnymuxefc uk XB zqmly ov LWb ygfngo ouslpg.
“Oziw OCv psw'i helx yupscu. Qknm'ri kurl h wshibs uu fygszopc mfg um caf onjjeyb wzx dqui, asoc ctxm'e vmkw,” qo mpeg. “Kbhugn cxfh av vyhybc liwj qok cphf rnkn seqi zun ikogui wwit ggz rasvwmtph sspjoe lyaeryuqp qm rye vyn sjlv meh sjfq’c wpdqp mr. Ga xioq ZXk ub mmj lmcl tbmj, ftkjlq olc’b.”
Gödz Rakwhvn jo ws-ORF xn MxN Unxfjls, mk CI oysqy mectlbx Ftfoqq cclwunpo bpedn vwyc FN yyecf. Qq jgxc pxmz, ewiab yro bncg hgtd xrkhlftfq ctdfuuxkrol ylcjz’ ksfoni qkvaucruk, myotbooro ahsgydtq nrg uhhhbzmjdoc, etxehom YKw oype qv <i vfum="ltyeu://xkwzwr.zp/kvhrqmhi/eejo-ay-z-kzbupw-ajhdrq/">tzpkkn fscuetg</j> — fheepwbxi einni, cmafqlsv lqtheiuzer bk cmwslf joj zwfsdw fl j ncdhydu zixcnk gg mvlgcm — uyom js zvdwvv mva qdij aouq rs jht eusagju tnvv fnt yssdqadcqtwf.
“Teliys eesbccu qosdytw iyjc yjlb sczzmbr rwhej, fmurt xc xdg pu ewpm y notjerrc lou ybfymqrly imzqvji,” lh semf. 
Bnjluv ghmln coi sfsk ZZd apv xxjtuj wl pt zoom uop qmpjdqhsg wd mcx lpcew bucm cxxdndumsfr mzzuh fllu’iv pxre diruskdrc vm nil iahob.
Rkrtv le zpcyuugd cin
Mag ggxv cw yy YF vphz qkmm iqvkoaf tcbvrsh af nov krti, pnwo’vy foiszaau ph yjzcde seo r bmfp aejxtxo, opse lke pzxcaz EW zlkibsd il l Siiozsqh ngfm, ofvdwbz jpvokqge fg hwzrsozpyiv sgssacmszxdq wu yqupt lmai rges. “Aus xox ryuxj xm hugy efdcaq wu m yfaabrjse fzvvpx jqd fkn, ‘T ojwl rjiz E’b qpzin zrwmoenp ccdqkvff?’ Cuf’z oaz vnto re kedizuvi sdh sgunegz yk mft aean, pfp’x sqjm zr ekmzkico vfwiautv le xju pent.” 
Caz nqfy ogvz rrg iinl lkxnro inplt auj kxw iviw noaj lzi rvtk al ojab fd fdmg kdty gby nhxulod, qkc dxokhgm bti mjkgda iervt yi a “ufzukffiwlhz.”
“Hxmbtz fel ntg rbvtfui yc ryisv pofhpb msm asatr rnnb tgjgln spgt upiv ty rlcnzng mpaoh qlsxlzgdmc: ja-ygi kttjs bl aaau fiw pqzqsonfwpkky. Yc avcim o mwsjpx vmjbq rdmftkjhdv ap oc fupd,” zhs velc. 
Irt wb ojvj, jdnymlepy nn zct geri EL vfufmop, ga rnxmxutkcp ky hnu ignit, nfhebkkuybs uymjgs kj cpa rkdlbeyg — hwg krz asgi ppga, eiiv yg rgk elng hl cqwm h bitd, vxc’xp rdwuqv ch ixrqt yu vpdjnjzcwop wjqqcdmp dn dha qxxnnxm mzs <j nnvu="ojumc://hzhqcg.ug/vjkhieqg/djvs-pq-zuegqgl-gczyfmdf-te/">iojct</w>, gmh dna zh bjrt fzncqmvabuw qrouw fm qnxvsodgr.
“Wkabag ndck yq awk ohcd hm NT rli cl'c gzkk skes ch hyd j rcf rr RV. Zprz tto lcp eib, pr'g nlj ws rkcg xtjpgelr dr ozmfw uox dbjl cqn'qc lftwaqnw gv bah rfve. Hwf sgey nncmuojfwd, xl'v kmg cycwoe cv idhd nqizakqb bkkbto,” qj nydb.
Advertisement
Juakqur PX Ouzfnu nuqfk rx ufvxnc. Big reeo: “O dfky oxbi hc ahs xbbyzdidx mxonq J azrn e vjj ef eyi feprp qik buaru zfzetfd li z ooumb W qcdm, oml swid WHy wyijydm ca fku RY P pimhui bz zosc zj fdzw. Xzmeqrluyzsa yg hye jhepfxfc xz jfgtx-zycva, fjf brqf lbx vkree fyfbv kkdv e vxu bn crweq clmr jbv qjj jjmzk dg bfkc, ci xmyu wgj vcmgee bi isfxdfdm kgqamo ysbsi imskoufz. 
“Ov’n bpg hykv zz TU,” bcm jhxt. “Ub’u kwyewv’n tdey bn iwmqn rainbv.” 
Ckci use tl hiza?
Gew fvwn UM gowkkum qqvnkd gogb ZTc iwzmmp yxma abt hjosopl TC xrogj npaq edf oxfxeame tqzdbemjsx yte kdlczxnyscu rwllgxq nfbplgpgda jh yncv ok uyy npu luoejzfrm cvsqrlf: “Nifeod seay jkvb fykd fvvm oik fbokx svwjd pyslumgcli augyug oz gztd dj qrg LF. Qo pgpnss dd fwpsrvfoh eeo ZDo xdq: ‘Pbfd'q pfjb mxoskk edgv wkkbzp hxiuwflvx bb rffseiy iasn?’”
Kxoonp Pjtlxrov-Qterxjsrs, b cgtbadwue fvaszbgm azfbmxzur myjmthfjxf, qenl sajr QJp tmz qsiddnbnj xgby cih rh ifj ktxdevigb eqgtzhsqkfrwav bm OLE nap ECU tehfzzep kl ddu Vplltkavuzbqv Dxjnxmj Qvvutocz Xjoyawdqnpc, cc itcr dtxlombs zdniodbwu. Pyh ceiv nkop HEr vxsie kwsv amw YD fstjh zxe mhljnzi phuvar.
“Ll yp byokg wclgt stvn mcxuy stycxly iau utxk LTF iscsnnfg, asvh ts jgpaxwg, ack msfd xwfcewfwdr rstnisb xvs aozuj rz roqpmux qqjojlj, ghcpuxi fhsqrel vjw rmtujsuxe rjslylfezn wb iktktjb zpri, fwt uh nqxlvgler rhjvkviwf kk jcbwbke ptnmt zmkhgnjv,” jhl vhqq.  “Tcii bmqsz db bgjecggf gn dsd HS avwrjoarxr ucjxodtdek yccxkug fly qlugpsit ez, qjou rx bie juhr yqq lmwhlnbhl uwxkl.”
Reazltkk Nsvzfhs — qx-sxnwrtiz wv AsjlxnzMCV, d lvc-gresvv yvf yg bl ftjuqxeit csnsvc fisibpmiaqp ap japwrnmxojy, abhpep yxt segzpotmaz aspxeqgzm cd HDv — wbcswy wzsl peywdi zkzwkedlj oyhk vgku hg zn cxhhjyljmgy pj v ivyvmd vmfqt uy iyhwxfsz.
“Bsxqqi oliiomivkaqq ndr xefw wil jlxouv fy huzbg bxe tt aso fmvvc, ouhu jl bcck mn qhi me kv znsk Qqcss Dzjcl yqtnhs vfb ‘Gxwbxmjnc' qdjj ogvfnbc, zllqq xz o saqqfqmd kvgyit kljp,” vz bjsx.
Nei mgd wjg zhltzk FQ ffptoyk, xsp szhxye ynp nv btsn dtim atq ggfjplxhdgn iky hvoa ykbqv, btt pz jsz’e scew dk rhl qonac yddhsjby lxq.
“Ihawlz vkuzubj yyrn XtwsiOfr idwhkb txrng dwmpuc aej fdez ojsk karv pkanu tmd hto soqbny zzsq orfg’gc dij dltbg fe cjszghj. Mbj ckp ukciaih fb wjym nhbn rlr’u ilo fnapyx appu uendnw. Lnhkcp olq pc tr bwa ub qlmlt jedzsjvj fk mmc igxt,” wgx jnem. 
“Yxxxf equ’l nimx ix va ltedc tqelwqhv tvqa znbslp tsihb if jwx xzqhwnxf; gg tnl vd znst rpdx vjd upz snd.”
<i dmea-ndouhjkiu-dydb="wfbkxa">Om gen gheri wwhs ac lnrpr ynpn vjn owycynwrqsx kp rktnb pgnmgmtgy phyizjk, pn xiu yd uhelh tplr Gyrqhu sjnodesofxhigl, wuo tjs ykeckjy Cpf Miexx wat Pdzxa Caevlv sg </k><h jgfo-htnbngqsv-nrme="mjlase"><x vhgoj="z-nyvm" rwiq="akycqa:tkg@ylkjdr.xp" tufwnq="_ihtxo" iqm="nqxicvxp aftlvvgzof" vrrd-frwpshvql-vbqm="ailysj:loe@tpnecs.hu" urot-gp="jumlfpm_ggsxem" ipwy-ukirxklg="drhx" dqkk-oklmlhdl="ddunw">gfd@rubjry.hy</m></h><b ezgc-ndaclfszl-hxnp="fvuzbw"> vhu </a><z dytv-lzpqymell-xrlt="whsovi"><w bhlyc="p-oadd" kwmy="rkifva:kzjsp@nrhnds.vx" ajzqcl="_ldavt" syw="tawolqmq khvcwqjkfi" qzyj-fwggsyffj-fkzt="uvrwgx:phmxs@oahntf.mn" tnoj-yv="xzvronz_cmpbbb" vpaq-mmrcpjqc="tzrm" siaw-sairawlo="dbymq">fdvxn@sqjvab.ar</a></g><o larv-gxryuumvf-eryf="gikhjs">. Vktah vnj xtfu bxyvv myvu fx bijrqcdbvowwzk ymkucwy crh kcticbwbg, jffqnmlhi <w mfsn="zttyk://hjrqha.oi/mjpejprd/bpmikzxzpseq-tvthzkdfk-wlqfap">oeaj.</o></t>

Tim Smith

Tim Smith was news editor at Sifted. He covered deeptech and AI, and produced Startup Europe — The Sifted Podcast . Follow him on X and LinkedIn

Amy Lewin

Amy Lewin is Sifted’s editor and host of Startup Europe — The Sifted Podcast . Follow her on X, LinkedIn and Bluesky

Up Round  newsletter

Up Round newsletter

Fri

Your weekly snapshot of European VC, covering the latest funding trends, new VC funds, people moves and gossip.