Fizz Accuses VC Jerry Lu of Sharing Confidential Startup Info with Rival Sidechat

A years-long lawsuit between college-focused social apps Fizz and Sidechat has taken a new turn, with Fizz accusing investor Jerry Lu of sharing confidential information with Sidechat. Fizz alleges that Lu, with venture capital firm Maveron, met with Fizz under the guise of exploring a potential investment, but then shared Fizz's non-public information with Sidechat. This raises questions about the role venture capitalists play in competitive startup markets, where founders often share confidential business information while fundraising, trusting that investors won't pass it along to competitors.

Both Fizz and Sidechat offer anonymous online forums and apps where college students can network and gossip, making competition for students' attention fierce. However, not all universities see the apps as providing value to their students. The UNC system banned the apps from its campuses across North Carolina, citing bullying and bad behavior on these anonymous social platforms.

Fizz originally sued Sidechat in 2023, alleging abuses including attempts to disrupt its launches, spreading false rumors, and paying students to delete Fizz's app. The original complaint didn't name Lu, as his involvement wasn't known at the time. Fizz learned of Lu's involvement through the legal discovery process, which revealed his role in obtaining and transmitting Fizz's confidential information to Sidechat's owner, Flower Ave Inc.

The new allegations against Lu include a screenshot of a text attached to the filing, showing Lu sharing notes with Flower after meeting with Fizz in March 2022. Fizz founders Teddy Solomon and Ashton Cofer shared non-public information about Fizz's business strategy, growth plans, and product roadmap with Lu during that meeting. Lu went on to invest in Sidechat's second seed round in October 2023, according to PitchBook data.

Fizz also claims that Jack Burlinson, an acquaintance of both the founders and Lu, shared confidential information with Lu, who then passed it directly to Sidechat. Requests for comment sent to Lu and Maveron were not returned, while Fizz declined to comment. Kyle Venn, CEO of Yik Yak and Sidechat, stated: "These are allegations, not court findings.

We deny any wrongdoing and will address this through the legal process. The alleged events happened before the current Sidechat team acquired the business in 2025 and inherited the lawsuit. No one on today's operating team was involved.

We're currently focused on making a great product, not suing other apps." Why this matters: This lawsuit highlights the challenges of maintaining confidentiality in competitive startup markets, where venture capitalists often have close relationships with multiple companies. The allegations against Lu and Maveron raise questions about the extent to which VCs should be involved in multiple competing startups, and what safeguards should be in place to protect sensitive information. For developers and businesses, this case underscores the importance of carefully vetting potential investors and partners, and ensuring that confidential information is protected.