Ello pockets $5.5 million, legally pledges to never feature ads

Out of nowhere, Ello exploded, ninja-style, into the public eye. The social network shot to fame after Facebook's real name policy sent many users scuttling off in search of a new home, and the spartan, "beautiful" (Ello's word, not mine) social network welcomed an influx of new users. In addition to the "use whatever name you want" philosophy, users were happy to find that Ello offered a completely ad-free experience.

Now the lack of ads has been enshrined in law. While pocketing $5.5 million in a new round of venture funding, Ello has converted to a State of Delaware Public Benefit Corporation (PBC). The social network vows to never show nor sell ads, and requires this commitment to transfer to any future owner, should the company be acquired.

In a document signed by Paul Budnitz and Ello's co-founders, the social network responds to "speculation in the press since our launch eleven weeks ago that Ello will someday be forced to allow paid advertising on its network". Despite conceding that the internet is "turning into one giant billboard", Ello remains committed to its "better way" of doing things. Ello explains that in converting to a PBC, it "is legally obligated to take its impact on society into account in every decision it makes".

While Ello enjoyed a massive boost in popularity a few weeks ago, interest seems to have trailed off slightly in more recent weeks. The round of venture funding was headed by Foundry Group, and Bidnitz says that the money will enable Ello to "take [its] time and build rather than rushing ahead and trying to make some money".