- PQShield secures an additional $37 million in Series B funding.
- Funding led by Addition, with participation from Chevron, Legal & General, and others.
- PQShield focuses on post-quantum cryptography to protect against future quantum-based cyber threats.
- Funds to be used for talent acquisition and enhancing partnerships with key industry players.
- Collaborations include companies like AMD, Nvidia, and advisory roles with major governmental bodies.
- U.S. National Institute of Standards and Technology to soon announce post-quantum cryptographic standards.
- PQShield provides technology for free to the Signal Foundation and other research projects.
- The company’s solutions span hardware, software, and secure communication tools.
- PQShield poised for significant growth in the rapidly evolving quantum security market.
Main AI News:
Malicious hacking is becoming increasingly sophisticated, pushing a clear trend in security technology. To protect individuals and organizations, security must also advance in complexity. Security startup PQShield has been proactive in addressing this, focusing on “post-quantum” cryptography: software and hardware solutions designed to withstand even the most powerful quantum-based hacks in the future.
Now, in response to industry demand for hardware and related systems, the company is announcing an additional $37 million in funding. This Series B round was led by Addition, Lee Fixel’s investment firm, with participation from new investors Chevron Technology Ventures, Legal & General, and Braavos Capital, along with previous backer Oxford Science Enterprises. Addition also led PQShield’s Series A in 2022. (Valuation details remain undisclosed.)
Founder and CEO Ali El Kaafarani, an Oxford mathematics academic, said the funds will be used to hire more talent and to enhance collaboration with both existing and new customers and partners. This list includes notable companies such as AMD, Microchip Technologies, Collins Aerospace, Lattice Semiconductor, Sumitomo Electric, NTT Data, Mirise Technologies (Toyota / Denso R&D), and others, alongside advisory roles with the White House, European Parliament, UK National Cyber Security Council, and World Economic Forum. The company has also collaborated with Nvidia.
“We maintain the highest density of cryptographers in the industry, particularly in post-quantum cryptography,” he said in an interview. Additionally, a significant development in standardization is expected to influence the field’s evolution. The U.S. National Institute of Standards and Technology has been working on post-quantum cryptographic standards for a decade. Dr. El Kaafarani anticipates these standards will be officially announced soon, possibly within weeks.
The evolving role of companies like PQShield — alongside peers such as Xiphera, Post-Quantum, and larger entities like Palo Alto Networks — is to provide advanced encryption to protect user data across both software and hardware layers as technology advances. Currently, much discourse around encryption centers on safeguarding messaging platforms. PQShield provides its technology pro bono to the Signal Foundation and collaborates on various research projects with them. In the enterprise sector, encryption is used to secure data within networks and during external transmissions.
The next phase will likely focus on data protection in AI environments, for both applications and model training, and safeguarding against AI-driven hacking. Apple, for example, is pioneering privacy in AI computing with its Private Cloud Compute approach, which integrates private clouds with custom on-device silicon to enable “private AI processing.”
“AI underscores the necessity of up-to-date cryptography,” said Dr. El Kaafarani. “I believe that companies like Apple will adopt post-quantum cryptography for AI directly, bypassing legacy cryptography.”
PQShield’s solutions span three formats: a system on a chip for hardware like smartcards or processors; a cryptographic SDK for integration into mobile and server applications for data processing or security operations; and a toolkit for communication companies to secure messaging services. This comprehensive approach makes PQShield’s technology highly commercializable, a key reason for investor interest, especially as computing and chip technologies evolve rapidly.
“PQShield continues to be a pioneer and leader in post-quantum cryptography for both hardware and software,” said Fixel in a statement. “With the forthcoming NIST standards, we expect a surge in the quantum security market and rapid adoption of PQC across the tech supply chain. Thanks to its industry-leading team and top-tier product offerings, PQShield is set to build on its success and secure our digital future.”
Conclusion:
The additional funding for PQShield signifies a pivotal moment for the cybersecurity market, particularly in the realm of post-quantum cryptography. As quantum computing advances, the need for robust security solutions that can withstand quantum-level threats becomes critical. PQShield’s proactive approach and strategic partnerships position it as a leader in this emerging sector, potentially setting new standards and driving rapid adoption across various industries. This development highlights a broader market trend towards prioritizing advanced cryptographic solutions to secure digital infrastructure against future threats.
