Zivity Spinning Off Funds and Employees Into Mediocre Celebrity Site TopFans.com

Zivity is a San Francisco start-up company founded by Scott (husband) and Cyan (wife) Banister.  Zivity’s business model was to sell a subscription fee of $10 per month to people that wanted to look at provocative pictures of women.  I always had my doubts about this company because they were essentially competing against all image search services and image websites.  Why would someone pay to use Zivity when you can find such content free?

Around October 2008, Zivity fired about one third of their staff and now they are splitting the company.  Zivity launched a new website called TopFans.com and it looks… for lack of a better word.. mediocre.  Celebrity websites are found all over the Internet, but TopFans just looks bland compared to all the rest.

When Zivity first launched, the company received plenty of media coverage which may be the reason how they raised $8 million in two rounds.  The company today has $4 million of cash left.  Zivity will retain $2 million and $2 million will be given to TopFans.com.  Thats unfortunate considering that the design of TopFans looks very cheap.  If you gave me $2 million, I could probably build the next Google.

Cyan will remain with Zivity, but CEO Jon Elvekrog will become the head of TopFans.  Remaining employees will be dispersed between the two.

BlueRun Ventures and Founders Fund will have ownership in TopFans.com now. Will they see a return on their investment?  Unlikely.

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