Dear Startup Investor,
Facebook has been under heavy fire this week after the whistleblower who revealed the results of a damaging study stepped forward.
Frances Haugen, a former staffer at Facebook, accused the company of prioritizing “profits over people,” leaning on the recent discovery that Instagram – which Facebook owns – inflicts serious harm on teenage girls.
Let’s be real here: ranking profits over people isn’t particularly shocking for a corporation that’s worth over $900 billion.
But the news triggered a nearly 15 percent tumble in Facebook’s share price… amounting to nearly $175 billion in value lost.
It couldn’t have come at a worse time for Facebook, which has been in hot water for years for its role in a critical issue: the spread of misinformation.
Two years ago, cybersecurity firm CHEQ conducted a study to investigate the cost of misinformation online. They found that fake news costs the economy roughly $78 billion a year – and that everyone, including consumers, feels the hit.
The coronavirus pandemic shed light on an even scarier impact of false information: the cost of human life.
Hundreds of people have died after taking hydroxychloroquine, an antimalarial drug that many on social media claimed was a miracle cure for COVID-19.
It isn’t. In fact, clinical trials show that COVID patients who take the drug have an increased mortality rate compared to those who don’t.
And rumors that the vaccines are dangerous (or even that they’re a cleverly disguised way for the government to spy on you) have run rampant on Facebook. We may never know the true toll of that.
Misinformation poses a critical threat to our safety and prosperity.
So why isn’t Facebook doing anything about it?
While we’ve spent years puzzling over the question, one startup stepped up to solve the problem themselves.
The company is called Factmata.
Here’s what we like about it: Factmata is tackling an issue that everyone faces. This isn’t a topic that only fits certain tax brackets. Misinformation can manipulate anyone.
The company has spent the last five years developing a natural language processing engine that gathers posts from social media sites, clusters them by “narratives,” and provides data on the dangerousness and pervasiveness of those narratives.
Factmata’s technology can be used by governments and other institutions to limit the spread of fake news, but it can also be used by brands and agencies that want to monitor their online reputations.
Factmata is backed by a star-studded list of investors including Mark Cuban and Biz Stone. The funders have helped contribute more than $3.8 million to the company’s research and development.
The company also has more than $1 million in grants – and as the “reputation management” industry grows, the grants could too.
In 2019, the online reputation management industry was valued at $183.83 million USD. By 2025, it’s expected to more than double to $410.71 million.
Factmata’s AI-powered tech could be at the center of all that growth… providing the data to support and drive the industry forward.
That makes right now the perfect moment to get in on the ground floor. And with just $100, you can claim your own stake in this company. Just click here to find out how.
We’ll talk soon.
The Research Team