Both Onavo and Path leveraged 'privacy' as a core part of their brand identity, yet both were undone by privacy scandals. This comparative analysis explores how trust, once positioned as a competitive advantage, became their fatal flaw.
The Fatal Flaw
The Onavo Story
Onavo was acquired by Facebook in 2013 for an estimated $100-200 million. The VPN app promised users privacy protection and data compression. However, Facebook used Onavo to track user behavior across apps, giving them competitive intelligence about which apps were gaining traction.
Onavo Timeline
Company Founded
VPN app focused on data compression and privacy
Acquired by Facebook$100-200M
Facebook acquires Onavo
Privacy Violations Discovered
Reports reveal Facebook using Onavo to track competitors
App Removed from App Store
Apple removes Onavo for violating privacy guidelines
The Path Story
Path positioned itself as a private social network, limiting connections to 150 people (based on Dunbar's number). The app gained early traction among tech elites who valued privacy. However, in 2012, Path was caught uploading users' entire address books without permission.
Path Timeline
Company Founded
Private social network with 150-friend limit
Series A Funding$8.5M
Led by Kleiner Perkins
Address Book Scandal
Caught uploading contacts without permission
Series B$25M
Despite scandal, raises more funding
Acquired by Daum KakaoUndisclosed
Sold to Korean company
Service Shut Down
Path officially closes
Onavo vs Path: The Privacy Paradox
| Comparison | ON OnavoAcquired | PA PathFailed |
|---|---|---|
Industry | VPN/Privacy Tools | Social Networking |
Country | — | — |
Founded | — | — |
Date of Death | 2019 (Removed from App Store) | 2018 (Service Shut Down) |
Lifespan | — | — |
Total Funding | — | — |
Capital Lost | N/A (Acquired) | N/A |
Employees | — | — |
Primary Cause | Privacy Violations | Privacy Violations |
Key Insights
The Privacy Paradox
Lesson Learned
“We made a mistake. We're sorry. We're going to fix it.”
The apology came too late. Path's user base, which had grown to trust the platform's privacy promises, felt betrayed. The company never fully recovered from the scandal, despite raising additional funding and attempting to pivot.