Mobile networks remain the main target of cybersecurity violations, and the persistent attacks on multiple carriers of Chinese hacking group Salt Typhoon are just the latest known examples.
Mobile carrier startup capes are taking new approaches to addressing problems. It built a service that says it can provide a safer, private alternative because it doesn't collect any data about you at all. Today, Cape announces some major developments in its efforts.
The Washington, D.C.-based company was founded by former head of the National Security Business of Palantia, who previously worked for the US Army Special Forces, but is releasing an open beta version of the MVNO mobile service. It inked a partnership with Proton, a provider of encrypted email, VPNs and cloud services. And it raised another $30 million in equity and debt financing.
A further $15 million in stocks are attached to A*, Costanoa, Point72 and XYZ Ventures Series B, which is classified as $30 million. An additional $15 million is being provided by Silicon Valley Bank in the form of debt facilities. This brought Series B stock to $55 million, with the original $40 million in April 2024 being announced by Andreesen Horowitz.
Although Cape does not disclose its assessment, it is noteworthy that when startups are building military, defense and security services, they focus and prioritize as geopolitics is changing.
While many of these shifts have been unfolding at a much higher level, including war, spying on officers and officials, and key contacts between large industrial organizations, Cape's products and its growth are one rare example of how some of its evolution is being played at the consumer level.
That's not to say that all of the Cape products are for everyday people. The new plan emerged with a $61 million funding shortly after the company that emerged from Stealth last year, launching a $1,500 phone called Obscura. Then, in January 2025, Cape made its first move to launch consumer services. All open slots in that closed beta were filled in 4 hours.
“We will regain control over our digital identity that has a lot of interest from the wider consumer market, people with a general desire to regain some of our privacy, who do not want to invest in digital networks to connect to our global network,” said John Doyle, CEO who co-founded the company with R&D director Nicholas Espinoza. Opening the beta.
In addition to his commitment to not track or sell data, the plan includes unlimited audio, text and data (but there is no WiFi audio yet, Doyle is still here).
As part of that plan, Cape also provides protection against the threat of two other emerging cells. The first of these is protection from SIM swapping to prevent someone from hijacking your number using encryption protection.
It also provides what is described as “advanced signal protection.” This refers to side-channel attacks via telephony signaling system 7. Tracking via SS7 has been a known issue for many years, but in December 2024 it was highlighted by the US government as a specific issue of sensitive calls, text and data.
Doyle added that general availability of phone plans will take place later this year. Currently, the closed beta version has fewer than 1,000 users and hundreds of Obscura phone owners.
Cape's services are fixed to Uscellular, and the plan is to introduce roaming services to users to expand to other countries and implement MNVO-based plans in other countries.
Europe has proven to be a big market for privacy-first services, offering an alternative to engagement in big technology. This led to apps like a signal climbing to the top of at least one European market app store. It could present an interesting and addressable market for startups like Cape.
The Cape is leaning towards its European tastes in a different way in the interim for privacy. Just as mainstream carriers prefer to link with marketing partnerships and promote more sign-ups through Buzzy Consumer Services, one recent example is T-Mobile inked partnership with the “AI phone” baffling. The Door first is a contract with Switzerland-based Proton, which encourages signing up for the latter company's premium offering. Those signing up for the Cape can pay $1 for a phone plan that costs $99 per month, and add it to the six-month Proton unlimited plan.
“We did a very rigorous investigation into this area and determined that Protons are a clear leader in reliability and how advanced their technology is, and how they are getting closer to the problem. [of privacy]Doyle said. He described the offer as the “first version” of the partnership between the two companies.