Mobile networks continue to be significant targets for cybersecurity breaches, with recent attacks by the Chinese hacking group Salt Typhoon on several carriers exemplifying this ongoing threat. In response to these concerns, the mobile carrier startup Cape is introducing a unique solution that promises enhanced security and privacy by not collecting any personal data—its website even operates without cookies. Cape has recently announced significant advancements in its efforts.
The Washington, D.C.-based company, which was founded by a former head of Palantir’s national security business and a U.S. Army special forces veteran, is introducing an open beta of its MVNO mobile service. This service is available through a $99/month subscription plan. Additionally, Cape has partnered with Proton, a provider of encrypted email, VPN, and cloud services, and has secured an additional $30 million in equity and debt funding.
This $30 million consists of $15 million in equity, supplementing its Series B from investors A*, Costanoa, Point72, and XYZ Ventures. Another $15 million comes from a debt facility provided by Silicon Valley Bank. This funding increases the equity portion of Series B to $55 million, following an initial $40 million announced in April 2024, led by Andreessen Horowitz.
While Cape has not disclosed its valuation, it is noteworthy that this funding comes at a time when startups focused on military, defense, and security services are receiving heightened attention amid shifting geopolitical conditions.
Cape’s products and growth illustrate how some of these geopolitical changes are influencing consumer-level innovations. Although not all of Cape’s products target everyday users, the company previously emerged from stealth mode with $61 million in funding and launched a $1,500 phone called the Obscura, designed for military and government officials and other high-risk individuals. In January 2025, Cape launched its first consumer service, with the available slots in its closed beta filling up within four hours.
CEO John Doyle, co-founder of Cape alongside Nicholas Espinoza, who oversees R&D, noted that the swift sign-up rate indicated significant interest from the broader consumer market. Many consumers are interested in reclaiming their privacy and controlling their digital identity without the level of investment required for an Obscura phone, leading to the launch of the open beta.
Cape’s plan, which promises not to track or sell data, includes unlimited voice minutes, texts, and data (although voice over WiFi is still in development) and offers encrypted voicemail. It also addresses emerging cellular threats, such as SIM swapping, by using cryptographic protection, and provides advanced signaling protection from side-channel attacks via the Signaling System 7 protocol.
Doyle stated that the general availability of the phone plan would be announced later this year, with current participation limited to under 1,000 users in the closed beta and a few hundred Obscura phone owners.
Cape’s service is supported by UScellular and plans to expand its roaming services and introduce MNVO-based plans internationally. Europe, noted for its preference for privacy-first services and alternatives to Big Tech, presents a promising market for Cape. The company aims to capitalize on European interest in privacy by partnering with other privacy-centric companies. Cape’s first collaboration is with Switzerland-based Proton, allowing Cape’s $99/month plan subscribers to access Proton’s premium offerings at a discounted rate.
Doyle described Proton as a leading figure in privacy technology and called this promotional collaboration the “first version” of their partnership.
