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When Spiro Verras posted the link of a Huffington Post article on Facebook about a new social networking site he co-founded, there was a slight problem: It was taken off his Facebook page shortly after posting.
“It was flagged as inappropriate,” the co-founder of the new site explains.
Although Verras admits offensive content is subjective, he doesn't think there was a valid reason for the link to be blocked — unless Facebook Big Brother was watching. “It was either the company itself or a fan of Facebook,” he says of his post being removed.
Either way, it helped reinforce Verras' motivation to create a social network to rival Facebook, which currently has 800 million active users.
Verras and business partner Natasha Dedis plan to change the business model behind social networking in a way that draws users from other similar sites, effectively doing to Facebook what it did to MySpace: destroy it.
Their firm? Unthink.
The story behind the name is that Dedis wanted to start from scratch when designing a new social networking site, one that wouldn't prey on volunteered demographic information from users like her son.
Dedis is not new to entrepreneurship; prior to this endeavor she launched and eventually sold a European fitness firm called Dynamic Fitness. But when her son asked to sign up for Facebook, Dedis got the idea for a new entrepreneurial adventure, according to Verras.
“When Natasha wants to know about something she's the type of person that will learn absolutely everything there is to know about it,” he says.
Dedis was disillusioned by the idea that her son's information — including likes, friendships and interests — was being used to craft an advertisement package specific for the boy.
The initial funds for the software design came from Dedis, Verras, who was a practicing attorney, and several Greek investors.
But Verras says he knew the company would need more funds to hire additional programmers.
After shopping the idea for a new social networking around to venture capital funds, they settled on one located overseas: Douglas Bay Capital, a holding company located in the U.K. The firm invested $2.5 million into Unthink in fall 2010. This gave the firm the capital to hire 68 programmers working out of New Delhi, India, and roll out its beta test.
The site is operational at unthink.com, but users need an invitation code to participate in the beta version. Verras says the test has been successful, already boasting 130,000 users.
The decision to stay out of Silicon Valley was made out of concern for the secrecy of each component making up Unthink's software.
“We have created a synergistic whole,” Verras says. “Each piece is very important. Even a guy that came to install some RAM had to sign a DNA (do not disclose act).”
The mystery behind Facebook's business plan — or lack thereof — was chronicled in David Fincher's “The Social Network.” But, Verras is quick to explain the sources of Unthink's revenues.
Unthink will include a “lifestyle” channel for each user that allows users to choose a brand to “endorse.” A business pays for the right to be included in the options of the lifestyle channel.
For example, Verras says he is a member of Apple and therefore receives updates and specials from that company. “You control how often you want to get them,” he says of the promotions.
Verras describes it as “virtual real estate.” He says Unthink is working with an undisclosed media conglomerate on a contract for this virtual land.
Verras won't forecast what Unthink's revenues will be in one year, but he says the company will start out profitable, unlike other social networking sites.
“It's not just a startup,” Verras says, “its a whole philosophy.”
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