Sherpa Capital to Start Over After Parting With a Founder Accused of Misconduct

(Bloomberg) -- Sherpa Capital’s Scott Stanford and former GGV venture capitalist Hany Nada are said to be talking to potential investors about a new fund and firm that would help bring some order back to Sherpa, which was hrown into chaos when its co-founder Shervin Pishevar resigned last December after misconduct allegations.

The duo are contacting potential investors, a person familiar with the situation said, who asked not to be identified because the fundraising is private. A spokeswoman for San Francisco-based Sherpa Capital declined to comment on speculation. The news was reported earlier Tuesday by Axios. 

“While I can’t confirm anything right now, I’ve been spending lots of time with Scott recently,” Nada wrote in a message.  “Please stay tuned.”

Teaming up with Nada would bring a venture capitalist with years of experience to add to Stanford’s investment banking background, including co-heading Goldman Sachs’s global internet business. Nada’s venture deals at GGV include Glu Mobile, Athenahealth, DraftKings, and Houzz. 

Sherpa Capital launched in 2014 and quickly made a splash with several high-profile investments. Its portfolio includes Uber Technologies Inc., Slack Inc., sock company Stance, household goods company Brandless and futuristic transportation startup Virgin Hyperloop One

The firm’s reputation stumbled last year in the wake of a Bloomberg News report alleging misconduct by Pishevar, including his arrest on suspicion of rape in London. He denied the allegations but resigned from Sherpa and as chairman of the hyperloop company he had co-founded. 

Stanford’s and Nada’s new firm will continue to manage Sherpa’s investments, Axios reported, and Sherpa’s existing employees will also move to the new firm.

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