Mobile networks are increasingly vulnerable to cybersecurity breaches, and recent attacks by the Chinese hacking group Salt Typhoon have highlighted this issue. In response, mobile carrier startup Cape has developed a unique solution that prioritizes user privacy and security. Unlike other services, Cape does not collect any user data, making it a more secure alternative. The company has made several significant announcements regarding its efforts.
Cape, based in Washington, D.C., was founded by a former head of Palantir’s national security business who has extensive experience in the U.S. Army’s special forces. The company is now launching an open beta of its MVNO (mobile virtual network operator) mobile service, which is available through a $99/month subscription plan. Additionally, Cape has partnered with Proton, a provider of encrypted e-mail, VPN, and cloud services. To support its initiatives, Cape has secured $30 million in equity and debt funding.
The funding consists of $15 million in equity from A*, Costanoa, Point72, and XYZ Ventures, added to its existing Series B funding of $40 million led by Andreessen Horowitz. The remaining $15 million comes in the form of a debt facility from Silicon Valley Bank. Although Cape has not disclosed its valuation, the funding reflects the increasing focus and priority given to startups in the military, defense, and security sectors.
While geopolitical shifts primarily impact higher-level activities such as warfare and espionage, Cape’s products demonstrate how these changes are affecting consumers. Although some of Cape’s offerings are designed for military and government personnel, the company has recently expanded its services to cater to the broader consumer market. The overwhelming interest in Cape’s closed beta program prompted the launch of the open beta.
Cape’s subscription plan includes unlimited voice minutes, texts, and data, as well as encrypted voicemail. It also provides protection against SIM swapping, a common cellular threat, and offers advanced signaling protection to prevent side channel attacks via the telephony signaling protocol Signaling System 7 (SS7). SS7 tracking has been a known issue for years, and the U.S. government has highlighted its potential risks to sensitive communications.
CEO John Doyle anticipates that the general availability of Cape’s phone plan will be later this year. Currently, there are fewer than 1,000 users in the closed beta program and a few hundred Obscura phone owners. Cape’s service is anchored on UScellular, and the company plans to introduce roaming services for users in other countries. Additionally, Cape aims to launch MVNO-based plans in various international markets, capitalizing on the demand for privacy-first services in Europe and the growing interest in alternatives to engaging with Big Tech.
In line with its focus on privacy, Cape has partnered with Proton, a Switzerland-based company that offers premium privacy services. Users who sign up for Cape’s $99/month phone plan can add six months of Proton’s Unlimited plan for just $1. This plan includes encrypted cloud storage, VPN, and expanded secure e-mail. Cape chose Proton due to its credibility, advanced technology, and commitment to privacy.
Cape’s partnership with Proton is the first step in its strategy to collaborate with like-minded privacy-first companies. By joining forces, Cape and Proton aim to drive signups and offer users comprehensive privacy solutions. With its innovative approach to mobile security and privacy, Cape is poised to make a significant impact in the industry.
