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  • Gab AI Inc

  • Clarks Summit, PA, USA
  • Overview
  • Investment
  • Team
  • Financials
  • Gallery
  • Documents
  • FAQ
  • Discussion
 
 

Overview 

Gab's vision is to build technology that empowers people to speak freely without fear of censorship or deplatforming. This vision is exciting and important because it recognizes the tremendous value of protecting free speech for all people in order to encourage diverse opinions and ideas.

Since 2016 Gab has built and maintained communication platforms that are protected by the most pro-First Amendment Terms of Service in the world. We have fostered a community with tens of millions of people who cherish the ability to speak freely and gain access to information, news, and knowledge that cannot be found anywhere else online. 

Our values are grounded in our Christian faith in Jesus Christ and we welcome those from all religious backgrounds—or no religious background at all—to join our community and speak freely.

The Problem

Gab was founded in 2016 by Andrew Torba, a Christian technology entrepreneur and best-selling author who left Silicon Valley to start Gab after he saw the rise in censorship from platforms like YouTube, Facebook, and Twitter during the 2016, and later 2020, presidential election.

As a result of our free speech principles, Gab has been no-platformed and banned by more than 25 service providers over the years, including both the Apple App Store and the Google Play Store, payment processors, and hosting providers.

Gab and Andrew have been relentlessly smeared by Big Tech, the mainstream media, academics, members of U.S. Congress, foreign nation-states and more for refusing to censor first amendment-protected political speech on Gab.

Despite these challenges, Gab has become more resilient by depending solely on our community of users from around the world to support the site and by building our own in-house infrastructure from the ground up.
 

Solution

Gab has one principal moderation rule: regardless of whether Gab’s administrators, outside activist pressure groups, “cancel culture” Internet mobs, the media, governments, or any other persons or entities agree with any Gab user’s political viewpoints, we strive to ensure that, wherever possible, any Gab user’s political speech that is protected by the First Amendment of the U.S. Constitution will be allowed on the platform.

Political speech which is unlawful in the United States, not protected by the First Amendment, or which in our reasonable opinion will lead to unlawful activity such as offline harassment is not permitted on the site. Such content includes threats of violence, doxxing, illegal transactions, child exploitation, and pornography. This makes Gab unique not only among the Big Tech established social networks and also against competitors in the “alt-tech” landscape as well.

The vast majority of the moderation on our platform is done by our users themselves. Users can block, mute, unfollow and moderate their own groups as they please. Free association is an important part of protecting free speech and Gab gives users the tools to create and shape their own experience.

Gab is the only alternative technology platform to have a fully integrated infrastructure, designed for resilience because it is separate and independent from Big Tech cloud platforms and infrastructure. We have our own servers, our own payment processor and our own in-house technology tools. These resources allow us to operate free from outside influence and pressure to censor First Amendment protected speech which is prevalent elsewhere on the Internet.



The Market

We welcome all people to speak freely. We believe it is necessary to defend the free speech and privacy rights of every person, whether our management agrees with any individual person’s beliefs or not.

As censorship undertaken by major platforms like Facebook, Twitter, Reddit, and Youtube grows, particularly where this appears to be done at the behest of authoritarian domestic politicians and foreign regimes alike, there is a risk that social media networks’ need to curry favor with government will effectively limit the scope of Americans’ free speech rights. Every American, and indeed every human being, deserves a safe place to engage in public, and where necessary anonymous, legal expression.

Gab believes in American values around political freedom and strives to create a space on the Internet where political values that informed the U.S. Constitution and Bill of Rights are safe. The site strives to protect all expression that is legal in the United States and to adhere to a content-neutral policy with regard to content moderation decisions. By adhering to these rules, and by basing our operations in the United States, we believe that we are in a unique position to extend crucial American civil liberties protections to every corner of the planet.

As mainstream social networks continue to crack down on "objectionable content," remove or heavily moderate online comment sections, and censor dissenting views, we believe the need for alternative platforms will continue to rise. We also believe the trend of "cutting the cord" will continue as the popularity of streaming content over the internet increases.

We believe these needs will result in more and more people using the Internet for commerce and social interaction, which we believe will accelerate the fragmentation process of the social networking ecosystem into smaller niche communities with shared values, ideals, and codes of conduct. The global social networking platforms market is evaluated at US$192.950 billion for the year 2019 and is projected to grow at a CAGR of 25.38% to reach a market size of US$939.679 billion by the year 2026. 




Our Products and Services

It is important to understand that Gab is not merely building an alternative social networking service. We seek to build a parallel internet and a parallel economy where anyone who wishes to use our services lawfully may do so, regardless of their political beliefs and how they may choose to express those beliefs through the use of our services. Our services span from social networking, to video hosting, to payment processing, to video conferencing, and to advertising technology. Because we are banned from both the Apple App Store and Google Play Store, we have developed a PWA (Progressive Web App) which can install an app-like version of Gab on Android and iOS devices without permission from Apple and Google. 

Gab Social is our social networking platform. The product is a cross between Twitter, Reddit, and Facebook. Gab allows its users to create usernames and mention one another like Twitter while also providing the practical functionality for commerce and community building like Facebook and Reddit. Gab Social is monetized with Gab Ads as well as with GabPRO, our optional subscription service. Gab Social features direct messaging, groups, and all of the standard features and functionality consumers expect from a modern social network such as notifications, feeds and a profile page. 

Gab Marketplace is a feature within Gab Social where users can buy and sell goods and services from one another. The Marketplace is great for small business owners and entrepreneurs who are just getting their business started. It is also a great resource for users who have things around the house that they want to get rid of. The Gab community uses the Marketplace in a wide variety of ways including for job postings, classifieds and direct commerce. The Marketplace has a wide variety of categories and we plan to soon integrate GabPay into Marketplace to facilitate transactions among users. 

Gab TV is our free speech video hosting platform. It has similar functionality to YouTube. Users can upload video content and embed, share and comment on it. Gab TV is monetized in two ways. The first is that we have a daily upload limit for free users, similar to Vimeo’s business model. Users can upgrade to GabPRO—our paid subscription service— for increased video size and bandwidth limits. Secondly, we have pre-roll advertisements on all Gab TV videos. Free users are shown Gab TV pre-roll video ads, while GabPRO users are not. 
 
Gab Voice is our video conferencing and live streaming platform. GabPRO subscribers can create Gab Voice rooms that are private or public. They can host video calls and audio-only calls, and also share their screen with other viewers. Think of it as Zoom, in the web browser, with a live streaming component.



Our Business Model


Gab Ads is our in-house advertising platform that launched in September 2021. Businesses, brands and users can use Gab Ads to run ad campaigns on Gab Social and Gab TV. Gab Ads can be targeted by location, device, and interest. Advertisers pay based on CPM (cost per 1,000 views) with a variable CPM of $2-5 depending on the advertiser’s targeting and placement options. Gab Ad types include standard infeed image ads, in-feed video ads, comment ads, and Gab TV pre-roll ads. 

GabPay is our in-house payment processor. GabPay collects 1.9% + $0.15 per transaction. We built GabPay after Gab was banned from payment processors like Paypal, Stripe, Square and many more. GabPay is a Paypal and Stripe alternative that is powering the parallel economy on Gab. We use GabPay to process our own transactions and are also onboarding other businesses to provide payment processing services to them. GabPay operates as a peer-to-peer payment processing platform, with a similar experience to Paypal. As part of our operational plan for 2023 we plan to integrate GabPay into all of Gab’s services for things like tipping, e-commerce, and monetization of content for Gab users.

GabPRO is our premium-user subscription program. We collect subscription fees primarily from credit cards at the beginning of the subscription period. Subscription revenues are recognized ratably over the subscription period, ranging from one month to one year, net of estimated cancellations. GabPRO unlocks additional features on Gab Social such as the ability to get verified—and also the ability to use Gab Voice, our video conferencing platform. GabPRO is $15/month, $99/year, or $500 for a lifetime membership. GabPRO users can optionally enable or disable ads. 

Gab also sells a variety of merchandise featuring pro-America, pro-freedom, pro-God, and pro-family messaging, among other things, as a revenue stream on our Dissenter Shop. These products include items like hats, shirts, mugs, phone cases, and other merchandise. 



Our Traction


We launched into private invite-only beta in August 2016. As of December 15th, 2022, we have over 5,940,109 cumulative registered user accounts and had 85.8 million monthly visits from 20.12 million unique visitors in the previous 30 days. We believe that the vast majority of registered accounts are unique users based on confirmed email addresses and unique IP addresses. 

There may be some users who register accounts with different e-mail addresses or switch IP addresses using a VPN, which we cannot account for in our data. Gab has been able to successfully generate millions of dollars in revenue to support and grow our community through our subscription service, advertising revenue, and merchandise sales.

A user does not need to have a registered account in order to use and explore the vast majority of Gab’s services. A registered user account is required only to post content on the site. Our community tends to follow what Jackie Huba and Ben McConnell refer to as the "1% rule” of online communities, an anecdotal rule of thumb which in general terms states that 1% of community members create original content, 9% engage or share that content, and 90% passively consume that content. We consider the 20 million+ unique visitors who passively read content on Gab to be "users" of the service. For clarity we designate a difference between "registered users" and "unique visitors."

We are able to monetize the traffic from all classes of users including unique visitors who do not have a registered account on the site, since all public feeds on Gab contain advertisements. 

Competitive Alt-Tech Landscape: Gab Is The Market Leader

According to Wolfram Alpha as of October, 2022, Gab has more traffic – in terms of hits per day – than all other alt-tech microblogging platforms combined, despite not having access to app stores, cloud hosting providers, and other services that all other competitors in the space still depend on to operate. 

A Pew Research report dated October 6th, 2022 about Gab and competitors BitChute, Gettr, Parler, Rumble, Telegram, and Truth Social said “just one site – Gab – does not appear to moderate content in the same way other sites do. While Gab does take steps to remove spam and follow legal requirements… researchers did not find examples of the site removing posts or accounts due to misinformation or offensive content.”

Other alt-tech microblogging platforms rely on Big Tech infrastructure to operate and because of this they have the same exact terms of service and censorship policies that Big Tech platforms require. Some of our competitors use AI systems like Hive Moderation to automatically censor content and all of them have some form of dependency on Big Tech infrastructure such as the app stores, cloud hosting, and even Google Ads in order to operate, thus defeating the purpose of claiming to be a free speech alternative to Big Tech.

Exposure to forced Big Tech censorship isn't a problem for Gab. We have already built our own resilient in-house infrastructure that we control called the Gab Cloud. This gives us the unique opportunity in the marketplace to provide a true free speech platform, which, judging by Gab’s advantage in user traffic over that of alt-tech microblogging competitors, we believe the market wants. 




Become A Gab Shareholder and Join Us On Our Mission To Defend Free Speech

Free speech is the cornerstone of modern society and a fundamental human right. In the age of the internet social media has become a primary platform for people to express their opinions and ideas while getting access to information, news, and knowledge. Many people feel that mainstream social media platforms do not allow them to express themselves freely. They feel that their voices are being silenced or censored and that their opinions are not welcome on these platforms. 

When people are free to express themselves it fosters innovation, creativity, and critical thinking. It allows for the exchange of ideas and perspectives and it can lead to the discovery of new solutions to complex problems. Free speech is essential for a healthy and thriving society. Free speech must be protected, defended, and preserved for future generations and that's exactly what Gab intends to do.  

We invite you to become partners with on this journey to defend free speech online for all people by investing today. 

Company Info

 
 

Corporate Information 
The Company was incorporated in Delaware as a corporation on September 9, 2016.

The Company is located at 700 N State Street, Clarks Summit, PA 18411, United States. The Company’s website is https://gab.com.

Valuation
Our offering price of $33.00 per share was based upon an estimated pre-money valuation of approximately $250 million, which was determined internally by the Company based on the best estimates of management based on market comparable valuation multiples.

Management Team

Andrew Torba
Andrew Torba has served as our Chief Executive Officer, Chief Financial Officer, Secretary and sole director since our inception in September 2016. He leads our product and company vision, marketing, operations and monetization.

Prior to founding Gab, Mr. Torba co-founded AutomateAds.com (f/k/a Kuhcoon Inc.), a social media advertising technology startup, and served as the Chief Executive Officer from October 2011 to August 2016.

Fosco Marotto
Fosco Marotto has served as our Chief Technology Officer since November 2020. Prior to joining Gab, from February 2013 to October 2020, Mr. Marotto worked at Facebook as a Software Engineer, Production Engineer, and Developer Advocate.

Notably, he created Parse Server, the popular open-source version of the Parse service. With 25 years of industry experience, he brings extensive backend infrastructure knowledge and insights from across the stack that we expect to help Gab continue to scale.

Employees
Gab currently has eleven employees that work in software engineering, customer support, operations, and infrastructure positions. We also work with several outside independent contractors who assist with specialized engineering tasks, marketing and ad sales.

Invest in Gab

 


Reasons to Invest 

Strengths and Opportunities


Gab allows people to speak freely on the internet without automated censorship algorithms, corporate or government enforced censorship, or bogus “fact-check” disclaimers placed on memes.
  • The company believes it provides the best service for First Amendment-protected speech in the market and this is confirmed by third-party analysis. A Pew Research report dated October 6th, 2022 about Gab and competitors BitChute, Gettr, Parler, Rumble, Telegram, and Truth Social said “just one site – Gab – does not appear to moderate content in the same way other sites do. While it does take steps to remove spam and follow legal requirements… researchers did not find examples of the site removing posts or accounts due to misinformation or offensive content.”
  • Gab respects user privacy in a number of ways that other services do not. We do not ask users for real names or to provide phone numbers for validation. We allow use of the platform through most VPN providers. We do not use third-party scripts on our sites, or tracking “pixels” elsewhere on the internet. Our advertising services do not uniquely identify the users viewing or clicking the ads, and we do not offer ad “re-targeting”.
  • We believe Gab is the only social network in the world that allows First Amendment protected free speech online with the resilient infrastructure required to maintain that mission free from outside influence.
  • Our content policies are simple, easy to understand, and easy to enforce.

Investment Terms

Price per Share

Our offering price of $33.00 per share

Valuation

$250,876,725.00

Our offering price of $33.00 per share was based upon an estimated pre-money valuation of approximately $250 million, which was determined internally by the Company based on the best estimates of management based on market comparable valuation multiples.

Deadline

December 31st, 2023

Traction

We launched into private invite-only beta in August 2016. As of December 15th, 2022, we have over 5,940,109 cumulative registered user accounts and had 85.8 million monthly visits from 20.12 million unique visitors in the previous 30 days. We generated $3.8 million in revenue in 2021 up from $307,000 in 2020.

We have built the most resiliant infrastructure stack in the alt-tech market by purchasing our own server hardware and associated infrastructure. We have built a social network, a payment process, a video hosting platform, and a video conferencing service among our product offerings. 

Financial Snapshot

Financial Highlights

Instructions

Documents

Project Title Document Title Action
Gab AI Inc Offering Memo Download
Gab AI Inc Form C Download
Gab AI Inc Subscription Agreement Download

Investment Location

Perks

As part of investing you will be able to claim an "Investor" badge on your Gab profile once the round closes. 

Frequently Asked Questions (FAQ)

What is the minimum investment in Gab?
The minimum investment is $330
What will Gab use the funds for?
We are seeking to raise $4,999,500 investments:
  • Infrastructure Expansion
  • Technology Enhancement
  • Marketing & Advertising
  • Personnel
  • Other Resources
As part of Gab’s growth plan for 2023 and 2024 we will be investing heavily in growing our technology team. We will hire several new engineers across various specialties: front and back-end software engineers, network and infrastructure specialists, operations and support staff.

While we believe Gab is already the most self-reliant alt-tech platform on the Internet, there are still a few third-party services that we rely upon. It is our goal with the proceeds from this funding round to remove most if not all of these dependencies within 1-2 years. We will build up and bring these remaining services in-house, preventing any outside entity from affecting our platform by deciding on a whim to refuse service for any reason.

We will invest heavily in application and network security, and increase redundancy across our hardware and software stacks. While we currently operate out of multiple data centers, we intend to at least triple the number of locations over the next 1-2 years, and build out our own “edge” network services, such as a content delivery network (CDN) to improve performance.

We will continue to purchase new servers and storage devices, to furnish the new facilities, upgrade existing facilities, and accommodate our increased growth. With this, we will improve and expand our existing systems and procedures around data storage and backups, infrastructure monitoring, and fault tolerance.

We will continue and improve upon our successful bug bounty program, working with outside teams to identify and mitigate potential logic or security issues before they could be discovered or used to disrupt the platform by those with nefarious intent. Currently we operate a number of satellite services as separate websites, such as GabTV, Trends, GabPay and our Shop. Work has already begun on a new and unified front- end for Gab, which will eventually bring all of these various services together under one umbrella. This new interface is a major development project, the most ambitious and complex mission we’ve embarked on. 

In 2023, we intend to continue to build and improve our core Gab platform, community, and the business models of GabPRO, the Gab Merchandising Shop, GabAds, and GabPay. We anticipate that we will need up to $4,999,500 in addition to our current cash on hand, to complete our milestones. The extent to which we will be able to achieve the milestones outlined below is dependent upon the funds we are able to raise from third party investors. If we do not raise a sufficient amount of funds from third party investors, we may not incur all the costs or complete all the milestones outlined below.

Q2 2023
• Complete off-site advertising system for publishers to monetize their web traffic with Gab Ads
• Expand the hardware infrastructure in our existing datacenter locations 

Q3 2023
• Integrate GabPay across all Gab services
• Open several new datacenters in the United States to further expand our infrastructure 

Q4 2023
• Invest heavily in sales and marketing to scale the business 
What is Gab's Growth Strategy?
  • Gab business is a technology and marketing driven business.
  • The cost of technology grows in pace with the growth in revenue mirrored by the growth in users
  • The growth in the cost of marketing and communication leads the growth in revenue
  • G&A expenses are kept low reflecting effective management systems and controls
  • Our broad growth strategy is simple: continue to protect the First Amendment while our competitors continue to censor.
  • We plan to use proceeds from this offering to market Gab services to new users.  
When will I receive my shares?
At the close of an offering, all investors whose funds have cleared will be included in the disbursement. When this happens each investor will receive an email from VC Cross with their Countersigned Subscription Agreement, which will serve as their proof of purchase.

Keep in mind that a company can conduct a series of closes or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.
When will I receive confirmation of my investment?
Once the company closes on your funds, you will receive a confirmation email from the company with details about your investment, along with a copy of your subscription agreement with a record of your shares. Depending on when the company requests a disbursement (close on funds), this could be a few weeks, or months, after the original investment was submitted.

Your shares are owned as book-entry, which is how most stocks are issued today. It means that you do not get a physical stock certificate, and instead, shares are held via electronic record by the issuing company’s transfer agent. The benefit of electronic book-entry shares is that it minimizes the costs and problems of lost or missing certificates, which can be overwhelming for companies to manage.
How can I pay for my investment?
Currently we have two payment options: echeck and wire transfer. 

E-Check
Your bank account information is used to create an electronic check, which is a form of direct payment that allows us to remain independent of mainstream payment processors. This is equivalent to sending us a paper check in the mail but is faster, safer, and more secure because it is encrypted and does not travel through the mail system. Your payment information will not be used for any purposes outside of executing your purchase and will not be stored on any of our servers. E-Check is only available in the US at this time.

Wire
Wire transfers are completed outside of the VC Cross platform, meaning you will need to contact your bank and provide them with the wire transfer information that is listed on the investment page and also emailed to you. This is the best option for larger investments and international investors. 
What is an Accredited investor and do I need to be one?
You don't need to be an accredited investor in order to invest in Gab's Regulation CF offering. An accredited investor is a person who has a networth of at least $1 million (excluding their primary residence) or earns at least $200,000 in income each year – $300,000 if combined with a spouse. A non-accredited investor is everyone else. If you are non-accredited simply choose this option during the account creation process.  
Why is my ID and other documentation required to invest?
Regulation Crowfunding rules require us to verify your identity as part of the KYC rules (Know Your Customer.) This is required by the SEC for anti-money laundering and fraud checks. VC Cross takes strong steps to safeguard your personal and personally identifiable information through vigorous physical, electronic and operational policies and practices. All data are considered highly confidential. The physical security of the data is achieved through a combination of network firewalls (there is no direct communication allowed between the database server and the Internet) and servers with hardened operating systems are all housed in a secure facility. 
Access to the system, both physical and electronic, is tightly controlled and limited to only those employees or third parties who have a need to know.  We do not allow visibility to Social Security number, bank account information, or credit card information via the website. 

 

Discussion

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Invest Summary

  • Deal Type : Reg CF
  • Issuer : GAB AI, Inc.
  • Funding Goal : $4,999,500
  • Investment Type : Social Media
  • Min. Investment : $330
  • Min. Funding Required : $500,000
  • Gab Offering Memorandum
  • Issuer:
    Gab AI Inc
    Andrew Torba
    Founder and CEO
    https://gab.com/