Would You Invest in a Company with No Profit?

This blog post is a response to this article on re/code.

The media dubbed “Anti-Facebook,” Ello, just raised $5.5 million by venturer capitalists like Foundry Group. Ello attracted the media’s and the internet’s attention last month in September when it was first released as an ad-free social network. The purpose of this website isn’t to simply remove the ads that some may find annoying but rather to value the privacy of each individual user.

Image Source

To keep this contract with the user, the makers of Ello filed a legally binding charter that forbade them putting up advertisements and selling user data. It makes me wonder whether this site will succeed or just become the next Google+. CEO, Paul Budnitz. claims they already have over a million users and three million on the waiting list but Google+ also bragged an incredible 25 million users after 24 days since launch.

With the signed agreement that prevents Ello from running advertisements, I, and I’m sure so are investors, are concerned how this company will possibly earn any money. A brave move indeed, but I can’t wait for the company to release their business model.

After studying so many firms, I am relieved to find out a company that actually cares for the users privacy and safety as an individual. By sealing this anti-advertising deal, Ello demonstrated signs of business ethics and corporate social responsibility. The social issue of privacy has been a public concern for a while now since the leak about the NSA and this may be one the limited companies that consumers may actually trust.

Standard

Leave a Reply

Your email address will not be published. Required fields are marked *