As consumer awareness of privacy issues grows, a wave of startups is emerging to help individuals monetize their personal data. One notable example is Datacy, which enables users to collect and aggregate their browsing data before selling it to the highest bidder. Similarly, Pogo and Tapestri reward consumers for granting access to their behavioral and purchasing data.
A fresh contender in this arena is Caden, which offers users the ability to finely tune their data-sharing preferences with third parties. Founded by John Roa, who sold his previous startup Äkta to Salesforce in 2015, Caden has received backing from Yahoo founder Jerry Yang. Caden allows users to collect analytics on their viewing habits, travel locations, purchases, and more, empowering them to monetize this data through various channels.
Roa was inspired to create Caden after witnessing the significant shift towards online privacy and data ownership. "For 25 years, users have exchanged personal information for free access to services, leading companies to hoard vast amounts of data without prioritizing user privacy," he said in an email interview. "I wanted to create a future where users are actively involved in the data exchange and not just passive recipients.”
Some might argue that existing privacy laws could more effectively address these concerns. In 2023 alone, 25 states and Puerto Rico proposed or considered nearly 140 consumer privacy bills, according to the National Conference of State Legislatures. Internationally, regulations like the EU’s General Data Protection Regulation (GDPR) and laws such as the California Consumer Privacy Act and the Colorado Privacy Act allow consumers the option to opt-out of data tracking and selling. However, as Roa points out, these regulations do not necessarily empower users to profit from their data.
“Our primary mission is to give users greater control over their data and reward them when they share it with trusted third parties,” he explained. “We provide a path for users to earn passive income while ensuring safety and sustainability."
To get started with Caden, users connect their existing online services, including Amazon, Uber, and Netflix. Through the app available on iOS, they can monitor usage statistics, gain insights, and find ways to earn money by sharing specific segments of their data with advertisers.
While handling sensitive information carries its risks, Caden ensures user data is stored securely in an encrypted "vault", anonymizing it before sharing with third parties. Users can opt-out or delete their data at any moment by removing their Caden accounts.
Caden has already amassed over a billion data points and compensated users with “hundreds of thousands” of dollars, but Roa views this as just the beginning. To further engage users, Caden recently introduced Caden AI, an AI-powered assistant that uses behavioral data to offer tailored content and product recommendations (e.g., “Since you’re traveling to Morocco soon, here’s a compelling documentary on Netflix for you”). While some find this approach intrusive, Roa believes Caden AI simply enhances the utility of the data users willingly share.
"We can provide users with relevant recommendations based on their unique hobbies or upcoming travel plans, rather than relying on generic suggestions," he noted. “Our aim is to help users discover the best deals and curate personalized experiences that align with their interests and budgets."
Caden provides users with precise controls over how their data is shared with advertisers, fostering a sense of security within the data-sharing process. The potential effectiveness of Caden's contextual recommendations remains to be seen. Nevertheless, the company is diversifying its strategy.
Caden is also set to introduce a tool called Context AI for enterprise customers, enabling marketers to inquire about consumer behaviors in natural language (e.g., "How have subscription numbers changed among key demographics since Netflix introduced its ad-supported tier?"). Context AI will deliver text responses and visual data representations, like charts and graphs, to clarify consumer insights.
This multifaceted strategy has attracted investor interest. Recently, Caden raised $15 million in a Series A funding round led by Nava Ventures, with participation from AME Cloud Ventures, Streamlined Ventures, Montage Ventures, Industry Ventures, 1707 Capital, and AAF Management. With this funding, Caden's total capital raised reaches $24.4 million. Roa plans to use the new funds to grow the New York-based team and further develop Caden AI, while also creating additional partnerships with retailers, loyalty programs, fitness platforms, and streaming services.
"We offer enterprises one of the most valuable assets: ethically sourced first-party data. We also simplify the complex decision-making and data science processes,” Roa stated. “As regulations tighten and understanding consumer behavior becomes more challenging, our tools will help businesses operate more efficiently, ethically, and sustainably."
The key question remains: Will users embrace platforms like Caden as marketers increasingly shift in that direction? Only time will tell.
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