1 and 2 started a fairly popular service (whose name is blacked out in the image) and sold it to a huge company. That company shut it down and 1 and 2 quit their own company in disappointment (the photo below was taken when they quit). 1 went ahead and started a very similar service again and now it is one of the most happening places on the web.

Who he? What service did he start?

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Answer:
Dennis Crowley who started Dodgeball, sold it to Google only to see it shout down, quit and started Foursquare. Now very popular it is.