Facebook Alternative MeWe Raises $27 Million To Help It Become A Household Name

Facebook Alternative MeWe Raises $27 Million To Help It Become A Household Name

The MeWe social networking application is seen on an Apple iPhone in this photo illustration in Warsaw, Poland on January 12, 2021. The alt-tech, light moderation social networking MeWe app is fast becoming the go-to alternative for the now banned Parler app. Parler was a “free speech” alternative to Twitter for many Trump supporters and other conservatives until it was removed from app stores following the storming of Capitol Hill on January 6. MeWe has entered the Apple App Store top ten list after having been downloaded more than a million times in 72 hours. (Photo illustration by Jaap Arriens/NurPhoto via Getty Images)NurPhoto via Getty Images

The privacy-focused social networking company MeWe is looking to change its reputation from being a hub for right-wing extremist groups to a trusted Facebook alternative that people have actually heard of. To do so, the company has raised $27 million in a Series A round led by the investment firm McCourt Global, which contributed $15 million. Previous investors contributed the other $12 million. The round values MeWe at $200 million.

Along with other alternative social media networks like Parler, MeWe gained a lot of traction following the November 2020 presidential election and January 6 insurrection as a space for right-wing extremists to congregate more freely after they’d been kicked off Facebook. MeWe saw an influx of 2.5 million new users during the week of Jan. 11, 2021, and currently the platform has 20 million users.

But now, CEO Jeffrey Edell is aiming to reach a much broader audience by focusing on MeWe’s firm stance on privacy and tightening content moderation rules by hiring more staff to its content moderation team. Its Privacy Bill of Rights states that users are the only ones who own their personal information. MeWe says that its platform does not manipulate, filter, or change the order of users’ news feeds, or use facial recognition technology. Its business model is subscription focused, rather than ad-supported, like Meta’s.

According to Edell, MeWe also supports free speech if done in a respectful manner. After facing backlash as a hub for right-wing content that had been banned from Facebook, Edell says MeWe hired more people on its moderation team and also implemented AI that tracks and removes hate speech and language that calls for violence. The platform also now bans accounts that sell guns, a decision for which Edell said he’s received a lot of pushback. However, a cursory search for terms like “stop the steal” and “gun sale” brings up several related groups and posts.
Screenshots of “gun sale” and “stop the steal” searches on MeWe.Courtesy of Forbes staff
Edell, who previously served as chairman of MySpace’s parent company Intermix and joined MeWe as CEO in April, acknowledged that he was wary of joining the company at first. But he says after researching the social networking site, he realized there was only a minimal amount of extremist content.
“I looked at my wife and she looked at me and she said, ‘You’re not going to get involved in a platform that has these kinds of issues, are you?’” Edell tells Forbes. “When I did my diligence and I really looked into it, I found that that was a very small portion of the platform.”
“Every platform out there, I don’t care who it is, Facebook, Snapchat, Instagram, Twitter, TikTok they all have their issues,” he says. “I found that the issue was not as widespread as previously thought about.”
But the company has a bigger problem: Most people have no clue what MeWe even is. That’s why Edell is aiming to use the new funding to invest in better marketing (though the company says that won’t include ads on Facebook or Instagram).
“We’re finding that what we do resonates with people out there and people don’t even know we exist,” Edell tells Forbes. “So it’s a continuation of getting a marketing push to get the information out there of who MeWe is, and what we stand for.”
If more people are aware of MeWe and making accounts, that means more people will buy subscriptions, Edell said. While you don’t have to pay to use MeWe, the service offers a premium subscription for $4.99 a month or $29.99 annually and is the first thing advertised when users create their accounts. The package includes unlimited voice and video calls, unlimited custom emojis and stickers, 100GB of storage, story video journals, unlimited custom themes and a premium user profile badge. Ad-supported platforms like Facebook, Instagram and Snapchat already offer some of these features for free, like unlimited video and voice calls and access to custom emojis.
Part of MeWe’s marketing budget will go to encouraging users to upgrade to premium subscriptions. The company declined to share how many of its users are subscribers or its revenue.
Along with his time overseeing MySpace, Edell is a show biz veteran, producing movies like The Kids Are All Right, The Grey and National Lampoon’s Movie Madness. With a background in both entertainment and tech, he hopes to bring more short form videos and music created by users to the platform. Right now, MeWe is in the process of partnering with influencers and entertainers to create NFTs (which Edell said will be announced at a later date).
“I felt like I was there at the beginning of social media,” Edell said. “I don’t like what’s happened to it since the MySpace days. Now I want to try to change the world and bring social back to the way it used to be.”
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Researchers investigate how to produce premium, zero-alcohol wine as demand surges beyond Dry July

Researchers investigate how to produce premium, zero-alcohol wine as demand surges beyond Dry July

Winemakers are working to capitalise on the growing popularity of zero-alcohol wine, as more Australians choose to curb the booze beyond Dry July.Key points:

  • Like meat substitutes, wine drinkers can be turned off alcohol-free alternatives because it doesn’t taste the same
  • An Adelaide researcher has been investigating how to replicate the wine experience without the alcohol 
  • Alcohol-free wine is a growing space for winemakers and restaurants 

However, one of the biggest turn-offs for wine drinkers has been that alcohol-free versions simply do not taste the same.Australian Wine Research Institute research scientist Wes Pearson has spent the past two years conducting sensory research on how to make the flavours and sensations of non-alcoholic wine as similar to the alcoholic version as possible.Mr Pearson said while no or low-alcoholic beer had tasted close to the full-strength version for some time, wine had lagged.He said the reason for that was because there were fewer ingredients to play with in winemaking.”You’re working with grapes, fermented grape juice,” he said.But Mr Pearson said non-alcoholic wines were a lot better than they used to be, especially sparkling and white varieties.”They often have a tiny bit of sugar in them, and they’ve got bubbles in them, so all of those things can add to that experience of replacing the alcohol,” he said.”So those are good tools that you can work with.”A man holding a wine bottle in front of several filled wine glassesA man holding a wine bottle in front of several filled wine glasses Wes Pearson is researching how to improve the likeness of non-alcoholic wine.(ABC News: Evelyn Manfield)Mr Pearson said red wine was particularly tricky to replicate because of its typically higher alcohol concentration.”That would be the holy grail, to make a shiraz with no alcohol in it that tastes like a traditional shiraz,” he said.To make alcohol-free wine, producers typically remove the ethanol through a spinning cone technology, which extracts alcohol using steam.But removing alcohol adds an extra step and therefore cost, which consumers can find hard to justify.So, to keep the cost down, producers often use cheaper grapes, Mr Pearson said.”If you’re starting with poor materials you’ll end up with a poor finished product,” he said.He said his research would be expanding at the end of the year to look at what grape varieties worked best and what could be done on the vineyard to help the alcohol removal process later on.Mr Pearson said the research would help smaller Australian wine producers get the insights needed to make the best products possible.Non-alcoholic wines rising in popularitySteering this research has been the wine industry’s desire to improve their non-alcoholic offerings due to increasing consumer demand.Wolf Blass, in South Australia’s Barossa Valley, has won plenty of awards for its red wines. A man in hi-vi vest, helmet and protective glasses inside a processing plantA man in hi-vi vest, helmet and protective glasses inside a processing plant Kerrin Petty says customers are keen to try non-alcoholic wines, as long as the flavour is there.(ABC News: Evelyn Manfield)Chief Supply Officer Kerrin Petty said zero-alcohol wines were a growing space for the company.”A third of our consumers would choose low-alcohol wine if they could find it and the flavour was at the quality level they expect,” he said.”So that’s really the chase for us, to make sure the quality that we’re delivering is in line with our consumers’ expectation.”Mr Petty said feedback from consumers indicated people wanted a non-alcoholic beverage, rather than a soft drink, that they could consume on a special occasion.”So, when people are out socialising and other people are drinking and they don’t want to drink for whatever reason, that alternative is just important,” he said.Diners driving demand for non-alcoholic drinksLeigh Street, in Adelaide’s CBD, is a popular dining strip filled, but not all potential visitors to the street want to drink alcohol.Shobosho, a restaurant and bar on Leigh Street, has potential customers contacting the restaurant ahead of time to enquire about their non-alcoholic offerings.Venue manager Charlotte Martin said the restaurant had expanded its zero-alcohol wine list to five different options, along with mocktails and non-alcoholic beers, in the past six months.”We really noticed people asking for it a lot more so we decided to start exploring those options and seeing what we could provide for people,” she said.wolf blass zero alcohol winewolf blass zero alcohol wine Low-alcohol red wines can be challenging to produce.(ABC News: Evelyn Manfield)DrinkWise chief executive Simon Strahan said research from his organisation showed there were a range of reasons people were opting for non-alcoholic alternatives.”Certainly, people want to be able to drive, and we found around about 28 per cent of people use that as their primary reason,” he said.”But overall, we saw people wanting to cut back on alcohol intake, have lower calorie options, lower carb options [and] making sure they could wake up the next day and feel refreshed.”It seems unusual, but 18-to-44-year-olds are twice as likely to consume zero and low-strength alcohol products, versus those aged over 45, based on the DrinkWise research.”Pivot after Chinese tariffs imposedAustralian Wine and Grape chief executive, Tony Battaglene, said the push to diversify the industry’s products was also important because of how punishing the Chinese tariffs had been.”It’s been a really difficult time,” he said.”So, the last two years, when we lost that $1.2 billion market overnight, people have rapidly looked to try and diversify markets … [to] Korea, Thailand and Hong Kong.”But he said no-alcohol and low-alcohol products were also a significant part of diversifying.”By far the biggest growth category for consumers has been no and low-alcohol and we’re seeing young consumers, in particular, who are moving towards these options,” he said. .