Delve suspends demos, Insight Partners mocks financial post amid ‘false tracking’ accusations

Delve, a startup followed by Y Combinator accused of forging certificates to his customers, he is disabled “showcase book” on his website.

The conflict, which was described last week in Substack’s newsletter known as “DeepDelver,” has also prompted Insight Partners to analyze the story behind it. $32 million money at the start. DeepDelver, which claims to be a former customer, said that Delve, which was valued at $300 million at the time of its Series A funding round last year, had created data to track its customers.

The first draft of this article, written by Insight Partners managing directors Teddie Wardi and Praveen Akkiraju, among others, and titled, “Improving social compliance with AI: How Delve is saving companies time and money in compliance,” remains to be seen. Here via the Wayback Machine, an online archive that stores web images.

Delve co-founders Karun Kaushik and Selin Kocalar, as well as Insight Partners, did not immediately respond to TechCrunch’s request for comment.

On its website, Delve says it has helped clients such as Microsoft, Chase, PayPal, American Express, and AI search firm Perplexity cut “hundreds of hours” of tedious work. However, it is still unclear how many of these companies are still using the platform.

Launched in 2023, Delve is said to enable AI to revolutionize the way security and regulatory certifications are implemented, including SOC 2, HIPAA, and GDPR – the standards that govern data protection, health privacy, and data protection in Europe, respectively.

In their Substack documentation, DeepDelver said that Delve “created evidence of board meetings, tests, and processes that didn’t happen,” then forced customers to “choose between relying on fake evidence or doing a lot of manual work without real machines or AI.”

The note also says that Delve’s platform rubber-stamps its own reports rather than conducting independent research.

Delve responded to the allegations by saying that it does not provide compliance reporting at all, and that it is instead an “automated platform” that enters compliance information and gives auditors access to that information.

Delve stated that its clients “can choose to work with an accountant of their choice or choose to work with Delve’s independent, certified third-party accounting firm.” The researchers, the founders said, “are established companies that are widely used in all industries, combined with other tracking methods.”

Responding to accusations that it provides customers with “false evidence,” Delve countered that it only provides “templates to help teams document their activities in the same way as other tracking platforms.”

Although the company denies the claims of DeepDelver, the suspension of the work of the “show book” and the analysis of the story of Insight Partners’s investment thesis show that the startup is doing damage control, and that investors are distancing themselves from the company.