Capazoo, a Canadian social network which promised to pay users for signing up friends, is is going under. The company has fired its 60-person development staff, which took two years to launch the site, and ended up attracting a little over 10,000 users. The best part of the site, by far, is its deadpan Web infomercial, where users like Corey Vidal, pictured here, talk about how they didn't make any money off MySpace or YouTube. TechCrunch reports that founders Michel and Luc Verville allegedly took $2 million out of the $25 million in venture capital the company raised. It doesn't mention what they spent it on. Here's the report from a company insider:
The one brother has a notorious coke addiction that was obvious to all investors he approached (it was a constant discussion among VCs, employees and anyone close the company) and the two brothers ended up fighting over the company, with one being ousted and them suing each other in court.
Anyone know more? Send in your tips.