Cape Opens $99/Month Beta of Its Privacy-First Mobile Plan, Inks Proton Deal, Raises $30 Million

Mobile networks continue to be a major target for cybersecurity breaches, with Chinese hacking group Salt Typhoon's persistent attacks on multiple carriers being the latest known examples. However, a new mobile carrier startup called Cape is taking a novel approach to addressing this problem: by building a service that provides a more secure and private alternative without collecting any data on users.

Cape was founded by a former head of Palantir's national security business who previously worked in the U.S. Army's special forces, and it has recently announced several big developments in its efforts. The Washington, D.C.-based company is releasing an open beta of its MVNO (mobile virtual network operator) mobile service, which comes in the form of a $99/month subscription plan.

As part of this launch, Cape has also inked a partnership with Proton, the provider of encrypted email, VPN, and cloud services. This partnership aims to drive signups to Proton's premium offerings among Cape users. Ingrid reports that this deal represents an exciting development for Cape, as it highlights the growing interest in privacy-first solutions.

In addition to its new plan and partnership, Cape has raised $30 million more in equity and debt funding. The $30 million is broken down into $15 million in equity and $15 million in 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's service is anchored on UScellular and will introduce roaming services to its users later this year. The company plans to extend its mobile network to other countries and also launch MNVO-based plans in various international markets, including Europe. Cape aims to tap into the growing demand for privacy-first solutions, as many consumers are seeking alternatives to mainstream carriers that prioritize data collection over user security.

By partnering with Proton, Cape is taking a proactive approach to addressing these concerns and providing users with more advanced encryption features. Ingrid notes that this partnership represents an exciting development for both companies, as it highlights the growing interest in privacy-first solutions and demonstrates the potential of collaboration between like-minded organizations in this space.

Key Takeaways

* Cape is launching an open beta of its $99/month subscription plan * The company has partnered with Proton to drive signups to premium offerings * Cape has raised $30 million in equity and debt funding, bringing the equity part of its Series B to $55 million * The company plans to extend its mobile network to other countries and launch MNVO-based plans internationally