College App Fizz Accuses VC of Sharing Data With Rival

College application platform Fizz has expanded its lawsuit against rival startup Sidechat, alleging that a venture capital firm shared confidential information obtained during a fundraising meeting. Fizz claims that a Maveron, a VC firm that had previously invested in Fizz, provided proprietary data to Sidechat, a direct competitor.

The expanded lawsuit, filed this week, details accusations that a Maveron's partner, David Cupps, shared Fizz's confidential business strategies and financial projections with Sidechat's leadership. Fizz asserts that this breach of trust occurred after a Maveron participated in a recent fundraising round for Fizz, gaining access to sensitive internal documents. The company argues that this information was then leveraged by Sidechat to gain a competitive advantage.

Fizz is seeking damages and an injunction to prevent further dissemination of its proprietary information. The company maintains that Sidechat's alleged use of this data constitutes unfair competition and a violation of trade secrets. This legal action highlights the intense competition within the startup ecosystem and the critical importance of maintaining confidentiality during investment discussions. The outcome of this case could set a precedent for how venture capital firms handle sensitive information across their portfolio companies.