Ello, the so-called anti-Facebook social network startup, this week made a new pledge to stay ad-free and announced it has raised a nice chunk of money to help with the effort.
Ello is now known as a public benefit corporation, which means investors cannot require the company to display ads or sell user data. The move also means that if Ello is ever sold, the new owners would also have to comply with these terms.
"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," the social network's CEO and co-founder, Paul Budnitz, said in a statement. "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."
As part of its announcement, Ello again promised it will forever be ad-free and allow members to use a real or anonymous identity, a nod to Facebook's recent real-name controversy. The company said it will instead make money by selling personalized features and other services at small prices.
"Ello currently has thousands of community members asking for specific paid features," the company said.
Meanwhile, Ello also announced that it has raised $5.5 million in a new round of funding led by Foundry Group, Techstars' Bullet Time Ventures, and FreshTracks Capital.
"Ello is using the power of their business to solve an issue that has been on the forefront of social networking for the better part of the last decade," Seth Levine, managing director at Foundry Group, said in a statement. "We're committed to their manifesto and are in this for the long haul."
Launched on Aug. 7 with 90 users, Ello is now raking in 45,000 invite requests an hour during peak times, the company said.
For more, see Just Say No to Ello.