Key facts
- Fizz accuses venture capitalist Jerry Lu of sharing confidential startup information with rival Sidechat.
- Lu allegedly met with Fizz under the pretense of exploring an investment.
- Fizz claims Lu transmitted its business strategy, growth plans, user metrics, and fundraising efforts to Sidechat.
- Lu invested in Sidechat's seed round after allegedly receiving confidential information from Fizz.
- Sidechat's current leadership denies wrongdoing, stating the alleged events predated their acquisition of the business.
A lawsuit between college social apps Fizz and Sidechat has intensified with Fizz accusing venture capitalist Jerry Lu of Maveron of sharing confidential information with Sidechat. Fizz alleges that Lu met with them under the guise of exploring an investment but subsequently transmitted proprietary details about their business strategy, growth plans, user metrics, and fundraising efforts to Sidechat.
According to Fizz's filing, Lu acted as a conduit for this information, even after investing in Sidechat's second seed round in October 2023, despite alleged discussions with Sidechat dating back to early 2022. The complaint also states that Jack Burlinson shared Fizz's investor deck and Fall Summary with Lu, who then passed it to Sidechat.
Fizz and Sidechat operate in the same market, providing anonymous online forums for college students, leading to fierce competition. Both apps have faced scrutiny, with the UNC system banning them due to concerns over bullying and bad behavior. Fizz's original 2023 lawsuit against Sidechat detailed allegations of disrupting campus launches, spreading false rumors, and encouraging users to delete Fizz's app.
Sidechat's CEO, Kyle Venn, denied any wrongdoing, stating that the alleged events occurred before the current team acquired the business and that they are focused on product development rather than litigation.