San Francisco-based social network Piczo lost 12 employees, or a quarter of its staff, in the months since November. One former Piczo exec says the company reduced its headcount in order to refocus on its European efforts. Trouble is, Piczo's U.K. traffic is down 56 percent in the last year. And the company just isn't making much money, former director of operations Parker Ranney told News.com. What's to blame for Piczo's downfall?

Piczo CEO Jeremy Verba says the company displayed excessive foresight. "We were in the United Kingdom early, and certainly as [Bebo and Facebook] came on, that affected us," Verba told the Times of London. If you're wondering, that's Harvard B-school you smell.