Ello Raises $5.5 Million, Legally Files As Public Benefit Corp. Meaning No Ads Ever


Well well…

TechCrunch

Ello.co, the ad-free social media network which blew uplast month, has nabbed $5.5 million in venture capital funding even as it plants a legal flag in the ground that the company will never make money from selling ads or user data and that no acquirer can do so either.

The company filed in Delaware as a Public Benefit Corp., which Ello says makes it legally impossible under US law for investors to require Ello to show ads, sell data, or sell the company to any buyer who would violate those conditions.

Ello chief executive Paul Budnitz said it was a response to the “giant billboard” that the Internet has become. The commitment from Ello also extends to the use of real or anonymous identities, while at the same time requiring members of this new “community” to follow common-sense rules of conduct.

Unfortunately, as our own Sarah Buhr…

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