AT&T’s recent massive customer data breach, affecting 74 million accounts, highlighted the vulnerability of carriers holding vast amounts of user data. Enter Cape, a startup based in Washington DC founded by a former Palantir executive, which is set to revolutionize mobile carrier security with a new approach. Cape has secured $61 million in funding to develop a highly secure system that does not require users to provide sensitive information like their name, address, social security number, or location.
According to Cape, “You can’t leak or sell what you don’t have.” They prioritize minimal personal information collection and store sensitive data locally on user devices for heightened privacy. The company emerged from stealth mode four months ago and is scheduled to launch its commercial service for consumers in June.
Cape’s funding consists of a Seed and Series A round of $21 million when it operated as Private Tech in stealth mode, and a subsequent $40 million Series B round. Major investors include A*, Andreessen Horowitz, XYZ Ventures, and others. The CEO and founder, John Doyle, brings extensive experience from his previous roles at Palantir and the U.S. Army Special Forces.
Cape’s focus on user privacy stems from the increasing concern around data breaches and privacy violations. They aim to provide eSIMs to users on a prepaid basis, partnering with USCellular to ensure secure connectivity. While the company will not initially offer encryption services for communications content, their core focus will be on protecting user identity and location data.
In a market where mobile privacy solutions have struggled to gain traction, Cape stands out as a game-changer. Existing solutions like prepaid SIM cards in the U.S. lack the security measures that Cape offers, leaving users vulnerable to data exposure and attacks. Cape’s innovative approach has attracted investors like Andreessen Horowitz, aligning with their vision to reshape mobile carrier-subscriber relationships.
