Since the Panic of '08 started nailing Silicon Valley startups, people have been begging Philip Kaplan to restart his FuckedCompany website. But Kaplan doesn't want a second dose of dotcom doom.

Sequoia Capital, the backer of Apple, Yahoo, and Google, ordered its startups to slash their payrolls this fall. We hear one CEO fired people so enthusiastically he had to retract some of his pink slips.

In the self-involved world of Silicon Valley, finding a suitable mate outside the industry is inconceivable. Dating at work is par for the course. So congratulations are due to Philip Kaplan and his new fiancée for defying local convention.

Eight years ago Philip Kaplan, aka Pud, turned his anonymous rumor site FuckedCompany into a modest advertising business. Today, Kaplan is chief something-or-other at AdBrite, a Sequoia-backed startup whose CEO has dutifully slashed its payroll down to profitability. By contrast, sloppy typist "FS Crew" at FuckedStartups has already thrown in the towel. "We have incredible pipeline of rumors and tips," promises the For Sale post atop the site. "We have other projects and don’t have the time to focused (sic) our 100% attention on this project." What FS Crew really means is: "Fuck, this is hard. Someone please pay me to quit." Sorry, but on Web 2.0, it's the other way around: Your customers quit you, for free.

Cue the schadenfreude brigade: AdBrite, the online-advertising network funded by Sequoia Capital, has laid off 40 of 100 employees. Why will some view this with glee? Because, a decade ago, AdBrite founder Philip Kaplan ran a site called FuckedCompany, which chronicled layoffs and cutbacks in the bursting of the bubble. AdBrite actually grew out of Kaplan's ad-sales efforts on the site. Two vice presidents are leaving, including Paul Levine, the former Yahoo executive AdBrite hired to run marketing last year. Anyone want to bet Levine will land at Zvents, a startup whose board of directors he recently joined?

We knew things were looking grim in the fatally overcrowded online ad-network space. But this is ridiculous. AdBrite's homepage currently states that the network, favored by smaller publishers, is serving "0 impressions a day on 0 sites." A glitch in its stats mechanism, surely — but also a harbinger of the shakeout to come. We hear persistent rumors of high turnover in the site's sales department.

FuckedCompany creator Philip "Pud" Kaplan's ad network, AdBrite, just fired its VP of Sales Jim Benton. In mid-August, a tipster told us it would happen. Now the same source tells us "free lunches are next on the chop." Engineering VP Mike Reaves and HR chief Melissa Vernon left the company earlier this year. Why's AdBrite in so much trouble? Because there are too many ad networks — about 300 — and not enough business to go around.Internet advertising rose 20 percent in the second quarter, but a disproportionate amount of those gains went to Google search, which is like a more profitable version of the Yellow Pages — companies have to pay each time customers look them up. Ad networks like AdBrite primarily sell display advertising, which might not seem nearly so crucial during tough economic time — and the text ads they do sell don't have Google's massive data-crunching algorithms behind them. (Photo by Brian Solis/Bub.blicio.us)

AdBrite, the online-ad network best known for its quirky founder, FuckedCompany creator Philip "Pud" Kaplan, is hiring an in-house lawyer. This is odd only in that last we heard, the online ad network already had one. Current general counsel Rebecca Eisenberg is just one of several vice presidents leaving the company, according to a tipster. Engineering VP Mike Reaves left in February, a month after HR chief Melissa Vernon. We'd also heard that cofounder Gidon Wise is out the door.Our source speculates that Paul Levine and Jim Benton may be next to go. The tipster suggests that AdBrite CEO Iggy Fanlo is replacing Benton with a yet-to-be-hired SVP of sales. This strikes us more than the usual amount of startup churn; when there's money to be made, Valley executives make a habit of sticking around for the payday. There's talk of an AdBrite IPO, but the enthusiasm for online ad networks on Madison Avenue and Wall Street is cooling fast. (Photo by Brian Solis/Bub.blicio.us)

A classic move by a startup hoping to recruit an executive is to offer him a board seat. So what to make of Zvents naming AdBrite executive Paul Levine to its board? Levine joined AdBrite, a San Francisco-based ad network, less than a year ago from Yahoo, where he ran that company's Yahoo Local properties. Since then, I've heard talk of high-level fights at AdBrite — the CEO and the head of sales yelling at each other behind closed doors, and constant turnover in the sales department.

New Jersey attorney general Anne Milgram served gossip site JuicyCampus and its founder Matt Ivester with a subpoena today. "There's an unbelievable amount of offensive material posted [on the site] and absolutely no enforcement," Milgram told the AP. Worse for JuicyCampus, Milgram served its ad network, Adbrite, too. The contract is already in the shredder.

From the beginning, Philip Kaplan has touted AdBrite's ad stats on the ad network's homepage. Today, it proclaims "470 million impressions a day on 54,328 sites." Which sounds impressive enough. Until one consults the Internet Archive and sees that more than two years ago, AdBrite was "serving 321,628,843 daily pageviews on 8,660 sites. AdBrite's pageviews have grown by less than 50 percent, while its customer base has expanded sevenfold. More customers, more costs; even on the Internet, catering to small fry gets expensive. If ad networks are a scale business, AdBrite has been growing the wrong number.

Why did FuckedCompany creator Philip "Pud" Kaplan record a profane song, "Fuck," in August under the name "Farty McPoopants"? The pseudonym is easy enough to explain: His current venture is AdBrite, an online-advertising network. And selling ads is a business that's all about keeping up appearances. Given his past, you'd think Kaplan wouldn't be so sensitive. But even Kaplan knew he couldn't blow his cool. His company, an online-advertising network, was in the midst of a tense negotiation with porn-ads partner AVN, and trying to raise a new round of financing.

How eager is AdBrite founder Philip Kaplan to get into the porn-ads business? So eager that he's counting the seconds. On AVNAds.com, the relaunch site for AdBrite's partnership with porn-trade publisher AVN, there's a splash page announcing the move to Black Label Ads, a new website wholly owned and operated by AdBrite, in less than two days. We hear that making a clean break with AVN — without the acrimony of past attempts to split up — was a requirement before Sequoia Capital and other investors put in their latest investment, a $23 million financing round for the online ad network. Not that investors have entirely quelled their concerns about AdBrite being in the porn business. The new site, Black Label Ads, attempts to disguise the AdBrite connection — except in its legal agreements.

AdBrite, the San Francisco-based online ad network, raised $23 million as disclosed in a regulatory filing found by PE Hub. Sequoia Capital, previously a backer, continued to invest in this round, along Artis Capital Management, a hedge fund which is relatively cozy with the Sand Hill Road giant. [PE Hub]

Philip Kaplan once ran the website InternalMemos.com, a compendium of leaked company missives. Now Valleywag has obtained one from AdBrite, the online-ad network Kaplan founded. AdBrite is now run by CEO Iggy Fanlo, who earns our Silicon Valley Tool award for railing at his employees about their work hours: "I continue to see too few folks here at 9 AM; and too few folks here at 6 PM." Let's leave aside the issue of whether Fanlo is violating California overtime laws; long hours are part of the startup culture. We just want to know if Fanlo has considered that employees might be avoiding the office in order to minimize contact with the company's erratic founder. The full memo, as Kaplan himself would have run it:

AVN, the porn-industry trade publisher, has at last split with longtime partner AdBrite, which ran an AVN-branded online ad network for adult websites. A new network, run solely by AVN, will launch on December 1. We first noticed the relationship was on the rocks when AVN yanked the AdBrite-run AVNads.com website offline and threw up a hastily built, barely functional site of its own back in August. AdBrite then briefed porn publishers about plans for its own porn-ad network, BlackLabelAds, which was supposed to launch in September, but never did. The two partners patched things up, restoring AdBrite's site. One small problem for AVN, though.

Ignoring the perfectly good solution we cooked up in Valleywag Labs, AdBrite and Ad Chap went to market with products for Facebook applications yesterday. AdBrite cofounder Philip Kaplan told CNET that the company already powers the ads on popular apps such as iLike and Zombies. The program is supposed to help tailor those ads better for the social environment. Google is working to do the same thing for developers using AdSense on their apps. Ad Chap's service, itself a Facebook application, is entirely new. Why it's unlikely to work? Ad Chap charges advertisers per click, but doesn't offer any targeting. For right now, there's a proliferation of ad networks on Facebook, but we suspect Darwin will soon cull the herd.

THE GALLERY LOUNGE, SOMA — Joel Sacks of AdBrite wants to have a word with me. No, nothing to do with his company's adventures in serving up porn ads; he's still pissed off about the time we caught him on video soaking himself with a pint of beer. This time, he's dry. But he's just lucky — this San Francisco bar is packed wall to wall, thanks to social-news site Reddit's open invitation for anyone to come and spill a free beer on their neighbor. The largesse comes from Reddit's owner, Conde Nast, the publisher of Wired, which bought the site a year ago. I got to meet Reddit's founders, most of whom are still, contrary to rumor, at the company. But one was, notably, missing in action: Aaron Swartz, the obstreperous Reddit cofounder who quit shortly after Conde Nast bought the site. More on the founders' status after the jump.

Philip Kaplan seems to have patched things up with AVN, the porn-industry trade publisher with which his company, AdBrite, runs an online ad network for adult websites. Earlier this month, AVN had abruptly yanked the AdBrite-run version of AVNAds.com offline and replaced it with its own hastily-built site for selling ads. In response, insiders said, Kaplan was readying to launch BlackLabelAds.com, AdBrite's own porn-ad network. Now, however, the AdBrite-run version of the network is back online. The spat however, came with a heavy financial price.

AdBrite is rebounding fast from the loss of its porn-ads partnership with AVN, the prominent publisher of news and information about the adult-film industry. While AVN appears to have taken back control of AVNAds.com, a website previously operated by AdBrite to market a network of independent porn sites to advertisers and publishers, AdBrite is moving ahead with plans for its own network, BlackLabelAds.com. According to publishers briefed by AdBrite, the new network, although it currently points to AVNAds.com, is scheduled to launch on September 1.