Cape Mobile Launches Privacy-Focused Plan, Partners with Proton

Cybersecurity Threats and the Rise of Privacy-Focused Mobile Networks

Mobile networks are consistently targeted by cybersecurity breaches, with the activities of the Chinese hacking group Salt Typhoon representing recent, prominent instances of these attacks.

Cape's Innovative Approach to Mobile Security

Responding to these challenges, the mobile carrier startup Cape is developing a unique service designed to offer a more secure and private alternative. This is achieved through a commitment to not collecting any user data, a principle extending even to its website, which operates without cookie tracking.

New Developments and Funding

On Wednesday, Cape announced significant advancements in its ongoing efforts. The company, headquartered in Washington, D.C., and led by a former head of Palantir’s national security division with a background in the U.S. Army’s special forces, is launching an open beta of its MVNO (mobile virtual network operator) service.

This service is offered as a subscription plan priced at $99 per month. Furthermore, Cape has established a partnership with Proton, a provider of encrypted email, VPN, and cloud services, and has secured an additional $30 million in funding through a combination of equity and debt.

Financial Details and Investment Trends

The $30 million funding round comprises $15 million in equity, added to its existing Series B funding from A*, Costanoa, Point72 Ventures, and XYZ Ventures. An additional $15 million is provided as a debt facility from Silicon Valley Bank.

This brings the total equity raised in its Series B round to $55 million, building upon the initial $40 million announced in April 2024, which was spearheaded by Andreessen Horowitz. Cape has not disclosed its current valuation.

Geopolitical Influences and Consumer Impact

The timing of this funding is noteworthy, as startups focused on military, defense, and security services are receiving increased attention and investment amid evolving geopolitical dynamics. Cape’s progress represents a rare example of how these broader trends are impacting consumers directly.

From Specialized Hardware to Consumer Services

Cape initially gained attention with the launch of the Obscura phone, priced at $1,500, specifically designed for military, government personnel, and individuals facing heightened security risks. Following a successful closed beta that filled all available slots within four hours, Cape is now expanding its services to the wider consumer market.

The $99/Month Plan and Core Features

CEO John Doyle, co-founder alongside Nicholas Espinoza (Head of R&D), stated that the rapid beta signup rate indicated substantial consumer interest in regaining control over their digital privacy. The new $99/month plan includes unlimited voice minutes, texts, and data, alongside encrypted voicemail.

Currently, voice over Wi-Fi is not supported, but is planned for future implementation.

Enhanced Security Measures

Cape’s service incorporates protection against emerging cellular threats, including SIM swapping, utilizing cryptographic safeguards to prevent number hijacking.

It also features “advanced signalling protection,” addressing vulnerabilities related to side-channel attacks through the Signalling System 7 (SS7) telephony protocol. The U.S. government highlighted SS7 as a potential risk for sensitive communications in December 2024.

Future Availability and Expansion Plans

General availability of the phone plan is anticipated later this year. Currently, fewer than 1,000 users are participating in the closed beta, with approximately two hundred Obscura phone owners.

Cape’s service is currently built on UScellular infrastructure, with plans to introduce roaming capabilities and expand its MNVO-based plans to other countries.

European Market Potential

Europe presents a promising market for privacy-focused services, as evidenced by the popularity of apps like Signal. This could provide a significant opportunity for a company like Cape.

Partnership with Proton

Cape is further emphasizing its commitment to privacy through a partnership with Switzerland-based Proton. Subscribers to the $99/month phone plan can add six months of Proton’s Unlimited plan for just $1, gaining access to encrypted cloud storage, a VPN, and secure email services.

“We conducted extensive research and believe Proton is the leading provider in terms of credibility, technological advancement, and their approach to privacy challenges,” Doyle explained, describing the offer as the initial phase of a broader collaboration between the two companies.