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RapLeaf was a US-based marketing data and software company, which was acquired by email data provider TowerData in 2013.


Company

RapLeaf was founded in
San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...
by
Auren Hoffman Auren Raphael Hoffman (born 1974) is an American entrepreneur, angel investor, author and CEO of SafeGraph, a firm that gathers location data from mobile devices and sells information about places and the movements of people. Personal life Hoffma ...
and Manish Shah in March 2005. In May 2006 the
Founders Fund Founders Fund is a San Francisco-based venture capital firm. Formed in 2005, Founders Fund had more than $11 billion in aggregate capital under management as of 2022. The firm invests across all stages and sectors, including aerospace, artificia ...
led a
seed round Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term ''seed'' su ...
of about $1 million, including
angel investor An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an individual who provides capital for a business or businesses start-up, usually in exchange for convertible debt or owners ...
s such as
Peter Thiel Peter Andreas Thiel (; born 11 October 1967) is a German-American billionaire entrepreneur, venture capitalist, and political activist. A co-founder of PayPal, Palantir Technologies, and Founders Fund, he was the first outside investor in Fac ...
and
Ron Conway Ronald Crawford Conway (born March 9, 1951) is an American venture capitalist and philanthropist. He has been described as one of Silicon Valley's "super angels". Early career Conway graduated from San Jose State University with a bachelor's de ...
. In June 2007 a second round included Founders Fund, Rembrandt Venture Partners and included Conway. The company's first product was a meta-
reputation system Reputation systems are programs or algorithms that allow users to rate each other in online communities in order to build trust through reputation. Some common uses of these systems can be found on E-commerce websites such as eBay, Amazon.com, and ...
that allows users to create reviews and ratings of consumer transactions, which they then contribute to multiple
e-commerce E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
websites. On January 26, 2007, Rapleaf released Upscoop, a service that allowed users to search for and manage their contacts by
email Electronic mail (email or e-mail) is a method of exchanging messages ("mail") between people using electronic devices. Email was thus conceived as the electronic ( digital) version of, or counterpart to, mail, at a time when "mail" meant ...
address across multiple
social networking sites A social networking service or SNS (sometimes called a social networking site) is an online platform which people use to build social networks or social relationships with other people who share similar personal or career content, interests, act ...
. In 2011, Rapleaf created a
data onboarding Data onboarding is the process of transferring offline data to an online environment for marketing needs. Data onboarding is mainly used to connect offline customer records with online users by matching identifying information gathered from offline ...
division named
LiveRamp LiveRamp Holdings, Inc. (commonly LiveRamp), is a San Francisco, California-based SaaS company that offers a data connectivity platform whose services include data onboarding, the transfer of offline data online for marketing purposes. The comp ...
, which later spun out into an independent company which was acquired by
Acxiom Acxiom (pronounced "ax-ee-um") is a Conway, Arkansas-based database marketing company. The company collects, analyzes and sells customer and business information used for targeted advertising campaigns. The company was formed in 2018 when Acxiom ...
in 2014 for $310 million. In 2012, Rapleaf began selling segmented data tied to email addresses for marketers to personalize email communications. Around September 2012 the company moved its headquarters from San Francisco to
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...
, and Phil Davis became chief executive, replacing Hoffman. Rapleaf was acquired by TowerData in 2013.


Controversy and backlash

On May 15, 2006,
eBay eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became a ...
removed a number of auction listings where the seller had included links to Rapleaf, claiming they were in violation of its terms of use. In late August 2007, Upscoop began e-mailing entire contact lists that were provided by their users when they log in. This caused some criticism, and the company later apologized for doing so. On July 10, 2008, Rapleaf changed its interface so that it no longer allows users to search people by email addresses. Instead, the service only allows a registered user to view their own reputation and the websites (social and business networking) to which their own e-mail address is registered. There was an immediate negative backlash by companies and individuals who had been using Rapleaf to both manage reputations and investigate the authenticity of people. In October 2010, the ''
Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' reported that Rapleaf had transmitted personally identifiable information, including
Facebook Facebook is an online social media and social networking service owned by American company Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin M ...
and MySpace IDs. Rapleaf said it had inadvertently transmitted that info and had ceased the practice. On October 28, 2010, Facebook banned Rapleaf from scraping data on Facebook, and Rapleaf said it would delete the Facebook IDs it had collected. A 2011 report said the company could tell the food preferences of employees of major companies. Between 2007-2013, Rapleaf received significant backlash over the data collection practices and sale of individuals' personal information to advertisers. As a public spokesperson for the company, much of the criticism was directed at the CEO
Auren Hoffman Auren Raphael Hoffman (born 1974) is an American entrepreneur, angel investor, author and CEO of SafeGraph, a firm that gathers location data from mobile devices and sells information about places and the movements of people. Personal life Hoffma ...
personally. A 2010 investigation by ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' revealed that the company transmitted identifying details about individuals to at least 12 companies, violating the terms of service of Facebook and MySpace. A spokesperson at Facebook said it had "taken steps. . .to significantly limit Rapleaf's ability to use any Facebook-related data." When confronted by ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' and ''
CNet ''CNET'' (short for "Computer Network") is an American media website that publishes reviews, news, articles, blogs, podcasts, and videos on technology and consumer electronics globally. ''CNET'' originally produced content for radio and televi ...
,'' it quietly revised its privacy policy both times. ''
CNNMoney CNN Business (formerly CNN Money) is a financial news and information website, operated by CNN. The website was originally formed as a joint venture between CNN.com and Time Warner's ''Fortune'' and ''Money'' magazines. Since the spin-off of Time ...
'' described RapLeaf as "selling your identity," and ''
TechCrunch TechCrunch is an American online newspaper focusing on high tech and startup companies. It was founded in June 2005 by Archimedes Ventures, led by partners Michael Arrington and Keith Teare. In 2010, AOL acquired the company for approximately ...
'' characterized its method of identifiable data extraction of Google and Microsoft employees as "creepy." RapLeaf later became known as LiveRamp after entering new markets. LiveRamp spun off the RapLeaf business and sold it to TowerData in 2013.


See also

*
ChoicePoint LexisNexis Risk Solutions is a global data and analytics company that provides data and technology services, analytics, predictive insights and fraud prevention for a wide range of industries. It is headquartered in Alpharetta, Georgia (part of ...
*
Lexis Nexis LexisNexis is a part of the RELX corporation that sells data analytics products and various databases that are accessed through online portals, including portals for computer-assisted legal research (CALR), newspaper search, and consumer informa ...


References

{{Reflist, 2 Companies established in 2006 Market research companies of the United States South of Market, San Francisco