Caden secures $15 million to enable users to monetize their personal data
As individuals become more aware of their privacy, there has been a surge in startups that allow people to monetize their data. For instance, Datacy permits users to collect browsing data, combine it with information from others, and then sell it to the highest bidder. Other companies like Pogo and Tapestri reward customers for accessing their behavioral and purchasing data. However, Caden, a new entrant in the market, has a different approach. They offer controls that enable users to fine-tune which data they want to share with third parties. Supported by Yahoo founder Jerry Yang, Caden gathers analytics data on users’ movie-watching habits, travel destinations, purchases, and more. It then allows users to opt-in to monetize their data in different ways. John Roa, the founder of Caden, explains that he was inspired to create this platform after observing the paradigm shift in online privacy and personal data access.
According to a recent email interview with TechCrunch, it has become increasingly common for individuals to exchange their data for free access to various services, apps, and websites. This has resulted in companies accumulating vast amounts of data without prioritizing their users’ privacy. However, the founder of a new startup envisioned a future where users would be empowered and placed at the center of this data exchange rather than having their data siphoned from them without consent.
Although privacy laws aim to protect consumers’ rights to opt out of data tracking and selling, they don’t necessarily provide mechanisms for users to earn money from selling their data. This is where this new startup comes in – they offer users a way to have more control over their data and earn passive income from sharing it with trusted third parties.
Ultimately, the core offering of this startup is to empower users to take control of their own data safely and sustainably. It is reassuring to find a company that values the safety and privacy of its users in light of the increasing concern regarding online security.
To sign up for Caden, users must link their existing accounts with online services such as Amazon, Uber, and Netflix. Users can use Caden’s iOS app to see their usage statistics and insights and even monetize specific data segments by sharing them with advertisers.
Considering the amount of sensitive data being stored, users may be concerned. However, Roa assures that Caden secures all data in an encrypted “vault” and anonymizes it before sharing it with third parties. Furthermore, users can opt out of data sharing at any time and delete their data by removing their Caden account.
According to Roa, Caden has collected over a billion data points and paid hundreds of thousands of dollars in compensation. However, this is only the beginning, as Roa hopes for even more growth in the future.
Caden has recently introduced Caden AI, an assistant powered by advanced technology that utilizes user behavioral data to provide tailored recommendations on content and products. For instance, if you’re planning a trip to Morocco, Caden AI might suggest a fascinating documentary on Netflix. While some may find this invasive, Roa argues that Caden AI merely utilizes data that users have willingly supplied to Caden, making it a valuable tool for enhancing user experience.
According to the company spokesperson, Caden aims to provide users with a personalized experience regarding their hobbies, travel plans, or significant life events instead of assuming or generalizing their preferences. Caden will assist users in exploring products and retailers that offer them the best deals, curating customized travel experiences based on their interests and budget.
Caden plans to launch a new Context AI tool to enable marketers and enterprise customers to ask natural language questions about consumer behaviors. For instance, they can ask about changes in subscription numbers and media consumption habits since Netflix added an ad-supported tier. Context AI will provide written responses and accompanying visual aids like charts and graphs to emphasize key information.
How well Caden can contextualize remains to be seen, but the company has other plans.
Caden has recently raised $15 million in a Series A funding round, with Nava Ventures leading the investment and participation from other firms such as Yang’s AME Cloud Ventures, Streamlined Ventures, Montage Ventures, Industry Ventures, 1707 Capital, and AAF Management. This brings the total amount raised by Caden to $24.4 million. The company plans to use the new funds to expand its team in New York, develop Caden AI, and establish more connections across various industries, including retailers, loyalty programs, fitness platforms, and streaming services.
Caden offers ethically sourced first-party data and handles expensive decision-making and data science tasks. As the cost and complexity of understanding consumer behavior increase, Caden aims to provide enterprises with powerful tools to do business more efficiently, ethically, and sustainably. However, whether users will embrace such platforms as marketers shift toward them remains to be seen.