Mobile networks are a prime target for cyberattacks, with groups like the Chinese hacking collective Salt Typhoon continuously attacking multiple carriers. Cape, a new mobile carrier startup, is taking a unique approach to address this issue. The company claims it offers a more secure and private service by not collecting any data from its users. Even its website doesn’t use cookies.
Cape, based in Washington D.C., was founded by a former head of Palantir’s national security division and a former U.S. Army special forces member. The company recently announced major updates, including the launch of an open beta for its MVNO (Mobile Virtual Network Operator) service. The service is available through a $99/month subscription. Additionally, Cape has partnered with Proton, the provider of encrypted email, VPN, and cloud services, and raised $30 million in new funding.
The $30 million includes $15 million in equity from investors like A*, Costanoa, Point72, and XYZ Ventures, along with another $15 million from a debt facility provided by Silicon Valley Bank. This brings the total equity raised in Cape’s Series B to $55 million, following an earlier $40 million round led by Andreessen Horowitz in April 2024. While the company hasn’t disclosed its valuation, the timing is notable given the increasing focus on startups in the military, defense, and security sectors due to shifting geopolitics.
Cape targets both consumers and specialized markets with its offerings. The company previously released the high-security Obscura phone, priced at $1,500, aimed at military personnel and others at high risk. In early 2025, Cape expanded its services to general consumers, and the beta slots filled up in just four hours. CEO John Doyle noted that the interest stemmed from consumers wanting privacy without having to invest in the high-end Obscura phone.
Cape’s $99/month plan includes unlimited voice, text, and data, though voice over Wi-Fi is still in development. The plan also features encrypted voicemail. Notably, Cape offers protection against two emerging mobile threats: SIM swapping and “advanced signalling protection,” safeguarding against attacks via the Signalling System 7 (SS7) protocol, which has been a known vulnerability for years. The U.S. government recently called SS7 a serious issue, especially for sensitive communications.
Cape’s mobile service runs on UScellular, with plans to introduce roaming services and expand its reach globally. Europe, where privacy-focused services are highly popular, is an attractive market for Cape. The company is collaborating with Proton, offering a $1 deal to Cape subscribers for six months of Proton’s premium services, which include encrypted cloud storage, VPN, and secure email.
Cape believes Proton is a leader in privacy tech, and this collaboration marks the beginning of their partnership. The company’s service aims to address the growing demand for privacy and security in a world increasingly vulnerable to cyber threats.
Source: techcrunch.com
