Stefan Glaenzer was removed from Passion Capital, which is funded by the British Business Bank and is the largest shareholder in the Monzo banking application, following an alleged incident last year.
Mr Glaenzer, 60, was arrested by Metropolitan Police in September following a complaint in June and charged with sexual assault last month.
London-based Passion has said it is severing all ties with Mr Glaenzer and will try to prevent him from sharing future profits.
The revelation will raise concerns about the male-dominated venture capital industry.
Mr. Glaenzer, a serial businessman who made 23 23 million when he sold the British start-up Last.fm, co-founded Passion in 2011.
It has become one of Britain’s best-known start-up investors, with a stake in Monzo worth nearly $ 1 billion (7 760 million), as well as holdings in $ 1 billion worth of GoCardless and Marshmallow start-ups.
Mr. Glaenzer had ceased to participate in investment decisions in 2018, but continued as a manager of existing funds and served on the boards of companies in which Passion had invested.
Passion has informed investors and start-ups about the decision to fire him in recent days. The success of her investments had put Mr. Glaenzer in line for rewards that could amount to tens of millions of pounds.
Passion said: “Passion Capital recently learned of criminal charges against Stefan Glaenzer, who has not played an active role in the company since leaving in 2018.
“While we do not know the specifics of the allegations, as Mr Glaenzer has not commented on the allegations, we have continued to break all contractual commitments that remain between him and our historic funds and activities.
“This means that we are in the process of removing his involvement and status in all of Passion’s entities from his previous role and we are actively seeking to exercise any rights that would limit him as much as possible from financially benefiting from any success. . ”
Passion said: “As we continue to look at our legal position and options to hold him accountable for the company’s disrespect and alleged behavior in a manner completely inconsistent with our values, we extend our sincere apologies to all the founders of the company. of our portfolio and affected groups, co-investors and mutual fund investors – and especially the victims.
“It’s our deep regret that we did not act to terminate all the agreements and revoke Mr Glaenzer’s rights earlier.
“To be very clear, we unequivocally condemn any form of attack or harassment in any situation and there are no words to describe the shame we feel for not speaking out and doing more to sever all ties as soon as we learned of the allegations last month.”
Met Police said: “Stefan Glaenzer, 60, of Kensington Park Gardens, W11, was arrested in September 2021 following a complaint to police in June of that year.
“On Monday, March 7, he was charged with postal assault with one count of sexual assault by touch.”
Mr Glaenzer will appear in Westminster Magistrates Court next week.
Taxpayer-funded British Business Bank invested 17 17.5 million in Passion in 2015 as part of an effort to improve funding for tech start-ups.
He said: “As a limited partner, the Bank has supported Passion Capital in its efforts to remove Stefan Glaenzer from these funds.
“The management of the transferred interest from the mutual fund is a matter for Passion Capital.”
Mr Glaenzer did not respond to requests for comment.
