A golden Ello: Ad-free 'Facebook killer' social network raises $5.5m - and pledges it will never show ads to users

  • Like a cross between Twitter and Tumblr
  • Created by California-based designer Paul Bundnitz 
  • Said he was ‘fed up with other social networks'
  • Site became massively popular within days 

By Mark Prigg for MailOnline

Published: 14:54 EST, 23 October 2014 | Updated: 15:37 EST, 23 October 2014

Ello, the ad-free social network dubbed a 'Facebook killer' after its huge initial popularity, has raised $5.5m in funding.

The site shot to popularity earlier this month, with over 40,000 people signing up every hour at its peak.

It's founders say the money will allow them to expand - but pledged to remain ad free.

Ello says over 45,000 people an hour sign up at peak times

Ello says over 45,000 people an hour sign up at peak times

THE ELLO CHARTER

As a Public Benefit Corporation, Ello is legally obligated to take its impact on society into account in every decision it makes.

1. Sell user-specific data to a third party;

2. Enter into an agreement to display paid advertising on behalf of a third party; and

3. In the event of an acquisition or asset transfer, the Company shall require any acquiring entity to adopt these requirements with respect to the operation of Ello or its assets.

In other words, Ello exists for your benefit, not just to make money.

'Ello is a simple, beautiful, and ad-free social network,' the team wrote.

'There has been some speculation in the press since our launch eleven weeks ago that Ello will someday be forced to allow paid advertising on its network.

'We understand some of this cynicism: with the Internet turning into one giant billboard, and with virtually all social networks relying on advertising to support themselves, it can be hard to imagine that there can be a better way.

'But 2014 is not 2004, and the world has changed. 

'Ello’s explosive growth over the last few months proves that there is a hunger to connect with friends and see beautiful things — without being manipulated by ad salesmen, boosted posts, and computer algorithms that don’t always have our best interests at heart.' 

Investors have pledged $5.5m (£3.4m).

'We’ll either build a business that doesn’t rely on third party advertising or the selling of user data or we won’t build a business,' said Seth Levine of Foundry Group, one of the firms backing Ello. 

'Our belief is that there are products and features that Ello can develop that users will be willing to pay for. 

'While the price points may be low, as part of a much larger ecosystem with millions of users, will provide an economic model for the company which supports the business and our investment.'

The firm has also taken the unusual step of becoming a Public Benefit Corporation

'To assure in the strongest possible way that Ello stays focused on its mission to be a different kind of social network, Ello has converted to a State of Delaware Public Benefit Corporation (PBC),  a special for-profit company in the USA that operates to produce a benefit for society as a whole.  

Ello looks like a cross between Twitter and Tumblr, using the @handles more commonly associated with former.

It has already proved popular among consumers

It has already proved popular among consumers

It was created by California-based designer Paul Bundnitz who came up with the design after feeling ‘fed up with other social networks.'

"The Internet is turning into one giant billboard, and with essentially all social networks relying on advertising, data mining, and selling user data, it can be hard for some people to imagine a better way. At Ello, we're building it," he said.

"We're fortunate to have a passionate global community that supports Ello's mission, and like-minded, socially conscious investors who understand that a company can provide a fantastic service, and be profitable, without advertising."

To sign up, users are instructed to enter their email address, or an existing user has to invite them.

The criteria for being accepted are unclear.

The site has even been dubbed a 'Facebook killer' for its clean design.

The site has even been dubbed a 'Facebook killer' for its clean design.

The site itself has a black-and-white colour scheme and a clean, scroll-down layout that lets users post status updates, upload pictures and comment on each other’s posts.

Those invited into the network are only allowed to invite five to 10 new people and the website's homepage states they will keep user data and privacy safe.

‘Your social network is owned by advertisers,’ the site reads.

‘Every post you share, every friend you make and every link you follow is tracked, recorded and converted into data. 

‘Advertisers buy your data so they can show you more ads. You are the product that’s bought and sold.’

 

 

 

 

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