Encryption Startup Niobium Raises $5.5M

Niobium, a custom silicon provider specializing in Zero Trust Computing, has secured $5.5 million in seed funding to further develop and commercialize its fully homomorphic encryption (FHE) accelerator chip.

FHE is a type of encryption that allows computations to be performed directly on encrypted data without needing to decrypt it first. This means that sensitive data can be processed and analyzed in a secure environment without ever being exposed in its raw form.

Spun out from Galois, a leading cryptography research and development firm, Niobium boasts a team of cryptography experts and chip designers, and has received substantial non-dilutive funding through federal programs to advance FHE into commercial use.

Niobium’s FHE accelerator chip, a PCIe card based on its FHE System on a Chip (SoC), significantly accelerates FHE software solutions while maintaining data privacy.

The new funding will be used to explore commercial applications of FHE acceleration in healthcare, finance, blockchain, and digital advertising, among other industries. Niobium also intends to expand its software engineering team, enhance IP protection, and optimize its hardware.

FHE offers transformative potential in the field of biometric technology, particularly in enhancing the privacy and security of sensitive biometric data such as fingerprints, facial recognition data, and iris scans. By enabling computations on encrypted data without the need to decrypt it, biometric data can be used for authentication, identification, or access control purposes without exposing the actual data to potential cyber threats or privacy breaches.

For example, a company could verify a fingerprint scan for building access without ever seeing the actual fingerprint data, thus maintaining the confidentiality of the individual’s biometric information. This is especially important as biometrics become increasingly integrated into various security frameworks in both public and private sectors, demanding robust solutions that safeguard personal privacy while ensuring data integrity and security.

Niobium will launch its Early Access Program (NEAP) in late Q2 2024 for interested companies to explore the potential of FHE acceleration.

“Securing this financing validates the groundbreaking work we’re doing at Niobium and propels us into the next critical phase of bringing our FHE accelerator chip to market,” said Kevin Yoder, president and CEO of Niobium. “Our vision of redefining data privacy and security through advanced cryptography is now closer to reality. This investment enables us to fast-track the exploration of applications that require absolute data privacy, opening new possibilities for confidential computing across various industries.”

The funding round was led by Fusion Fund, with notable contributions from Morgan Creek Capital, Rev1 Ventures, Ohio Innovation Fund, and Hale Capital. Shane Wall, Fusion Fund partner and former CTO of Hewlett Packard, has joined Niobium’s board as Chairman.

Niobium plans to demonstrate the solution and initiate pilot programs in Q4 of this year.

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May 13, 2024 — by Ali Nassar-Smith