@goth1856 God, I'm so tired of seeing those absurd links. The guy who wrote the "Ello, Goodbye" post obviously doesn't understand how startup funding works. $435K is a minuscule amount of money ("half a million" sounds like a lot, and it would be if it were all paid to one person. Spread out over a team, it's not very much at all. And it's a tiny investment by VC standards.) They didn't get anywhere near majority control for such a small investment. I have a startup myself and we've raised twice what Ello has raised and there are no strings attached to the money, at all. We still retain majority control, by far. It's a seed investment. Seed investors do not get to dictate the future direction of any company. The whole article is just really ridiculous, actually.
This guy, Aral Balkan, is spreading pure speculation based on a distorted understanding of how funding works. Not to mention the fact that there's no reason why Ello has to have ads to make money. Their proposed model has a perfectly good chance of working without ads, ever.
Finally, these big bad "VCs" are leftie Vermont types who also hate ads, according to multiple interviews.