Filing: College app Fizz accuses VC of sharing confidential startup information with rival Sidechat
A years-long lawsuit between the college-focused social app Fizz and rival Sidechat over unfair competition practices has taken an interesting turn. In a new filing, Fizz is accusing investor Jerry Lu of the venture capital firm Maveron of meeting with Fizz under the guise of exploring a potential investment, but then turning around and sharing Fizz’s non-public information with its rival, Sidechat.
The new allegations raise questions about the role venture capitalists play in competitive startup markets, as founders routinely share confidential business information while fundraising, trusting that investors won’t pass it along to competitors. Some VCs continue to request updates from startups they passed on, founders have said.
Both Fizz and Sidechatare in the same business: anonymous online forums and apps where college students can network and gossip. As a result, competition for students’ attention is fierce. However, not all universities see the apps as providing value...
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