paidContent - Zivity Spins Off Employees, Funding Into New Company
This story was written by Tameka Kee.
Adult social network Zivity is splitting in two, with the majority of its employees headed to a new celebrity-obsessed site called Top Fans. Zivity raised $8 million over two rounds of funding since late 2007; the startup has about $4 million worth of that cash left, according to TechCrunch, which will be split between both startups.
It’s a classic case of a company with disparate business strategies splitting in two: Zivity co-founder Cyan Banister will remain with the adult content side of the business, while former CEO Jon Elvekrog will head up the new site (which has a ton of competition from properties like MSN’s new UGC-focused Entertainment portal).
BlueRun Ventures and Founders Fund, Zivity’s backers, now have stakes in Top Fans, while Zivity’s founding team and angel investors have retained ownership of the original site.
Related
By Tameka Kee