Mobile networks continue to be a major target for cybersecurity breaches, and Chinese hacking group Salt Typhoon‘s persistent attacks on multiple carriers are only the latest known examples.
The mobile carrier startup Cape is taking a novel approach to addressing the problem: it has built a service it says can provide a more secure, private alternative because it doesn’t collect any data on you at all — even its website doesn’t have a cookie gate. Today, Cape is announcing a few big developments in its efforts.
The Washington, DC-based company — founded by a former head of Palantir’s national security business who previously worked in the U.S. Army’s special forces — is releasing an open beta of its MVNO mobile service, which comes in the form of a $99/month subscription plan; it has inked a partnership with Proton — the provider of encrypted e-mail, VPN and cloud services; and it’s raised $30 million more in equity and debt funding.
The $30 million is broken down as further $15 million in equity tacked on to its Series B from A*, Costanoa, Point72, XYZ Ventures. A further $15 million is coming in the form of a debt facility from Silicon Valley Bank. This brings the equity part of its Series B to $55 million, with the original $40 million announced in April 2024 led by Andreessen Horowitz.
Cape is not disclosing valuation, but it’s notable that the funding is coming at a time when startups building military, defense, and security services are getting increased focused and priority at a time when geopolitics are shifting.
While many of those shifts are playing out at a much higher level involving wars, espionage against officers and officials, and major contacts between outsized industrial entities, Cape’s products and its growth are one of the rare examples of how some of that evolution is playing out at a consumer level.
That’s not to say that all of Cape’s products are for everyday people. The new plan comes on the heels of the company last year emerging from stealth with $61 million in funding, launching a $1,500 phone called the Obscura, which was designed expressly for military and government people and others like them: “those facing elevated threats” in the words of the company. Then in January 2025, Cape made its first move to launch a service for consumers. All the open slots in that closed beta filled up in four hours.
CEO John Doyle, who co-founded the company with Nicholas Espinoza (who is the head of R&D), said the rapid pace of sign-ups pointed to “a lot of interest from the broader consumer market, folks who have a general desire to take back some of their privacy, take back control of the digital identity as they connect to global networks, but maybe don’t want to invest at the level required to buy an Obscura phone,” and that’s what led to today’s open beta.
In addition to a commitment not to track or sell data, the plan includes unlimited voice minutes, texts and data (but no voice over WiFi yet, Doyle said; that’s still coming), as well as encrypted voicemail.
As part of its plan, Cape also provides protection against two other emerging cellular threats. The first of these is protection from SIM swapping, using cryptographic protection to keep someone from hijacking your number.
And it offers what it describes as “advanced signalling protection” — which is in reference to side channel attacks via telephony signally protocol Signalling System 7. Tracking via SS7 has been a known issue for years, but in December 2024 it was highlighted by the U.S. government as a particular issue for sensitive calls, texts and data, which it said could be accessed by spies from military and other personnel using the protocol.
Doyle added that general availability for its phone plan will come later this year. Currently, there are under 1,000 users on its closed beta, and a couple of hundred Obscura phone owners.
Cape’s service is anchored on UScellular, and the plan is to introduce roaming services to its users to extend to other countries, as well as to introduce MNVO-based plans in other countries.
Europe has proven to be a big market for privacy-first services, as well as those that provide alternatives to engaging with Big Tech. That’s led to apps like Signal climbing to the top of the app stores in at least one European market. That could present an interesting addressable market for a startup like Cape.
Cape is leaning into that European penchant for privacy in another way in the meantime. Just as mainstream carriers like to link up in marketing partnerships with buzzy consumer services to drive more sign-ups — one recent example being T-Mobile inking a partnership with Perplexity for an “AI Phone” — Cape is doing the same with like-minded privacy-first companies. First out the door is a deal with Switzerland-based Proton to drive sign-ups to the latter company’s premium (paid) offerings. Those who sign up to a Cape $99/month phone plan can pay $1 to add on on six months of Proton’s Unlimited plan, which includes encrypted cloud storage, VPN, expanded secure e-mail and more.
“We did a really pretty rigorous survey of the field and determine we think Proton is the clear leader in terms of credibility and how advanced their tech is and the way they’re approaching the problems [of privacy],” Doyle said. He described the offer as “the first version” of a partnership between the two companies.
