As cyberattacks on mobile networks surge, a secure mobile network startup called Cape is making waves with a radically different approach—one built entirely around user privacy and data protection. Based in Washington, D.C., Cape has developed a mobile service designed to shield users from common cellular threats while promising never to collect or sell their data.
On Wednesday, Cape announced several major updates: the launch of its open beta for its privacy-first MVNO (mobile virtual network operator) plan, a new partnership with encrypted service provider Proton, and $30 million in new funding split between equity and debt.
The $99-per-month subscription plan offers unlimited talk, text, and data, along with encrypted voicemail. But what truly sets Cape apart is what it doesn’t collect—there are no trackers, no cookies, and no data harvesting, even from its website. CEO John Doyle calls it a phone service designed for those who want to “take back control of their digital identity.”
The $30 million funding includes $15 million in equity—adding to its Series B led by A*, Costanoa, Point72, and XYZ Ventures—and $15 million in debt financing from Silicon Valley Bank. That brings Cape’s total Series B raise to $55 million, on top of the $61 million it secured when it came out of stealth in 2024, backed by Andreessen Horowitz.
Cape’s timing is no accident. Interest in military-grade, secure communications is growing rapidly amid global geopolitical shifts and rising concerns over surveillance. While much of this activity happens at the nation-state or corporate espionage level, Cape is one of the few startups translating that demand into a consumer-ready product.
However, Cape didn’t start by targeting everyday users. Its first offering was the Obscura, a $1,500 ultra-secure phone designed specifically for military personnel, government agencies, and individuals at heightened risk of surveillance. Now, the startup is expanding its reach, betting there’s a broader market of privacy-conscious users ready to invest in greater security without splurging on a specialized device.
The company’s initial consumer beta launched in January 2025 and filled up in just four hours—proof, Doyle says, that consumers are increasingly aware of the risks of mobile surveillance. “We’re seeing huge demand from people who want better privacy but don’t want to spend thousands on a hardened phone,” he said.
Beyond data privacy, Cape’s new plan offers advanced defenses against two fast-growing threats in mobile security: SIM swapping and SS7 attacks.
Cape uses cryptographic protections to prevent SIM swapping, a type of fraud where attackers hijack a user’s phone number to gain control of sensitive accounts. It also protects against Signaling System 7 (SS7) vulnerabilities—a known flaw in telephony infrastructure that spies and hackers exploit to intercept calls, texts, and data. The U.S. government flagged SS7 as a major risk for sensitive communications just last year.
Currently, Cape’s service runs on the UScellular network, but expansion plans are in the works. The startup aims to add international roaming and replicate its MVNO model in other countries, with Europe flagged as a particularly promising market due to its strong privacy laws and consumer demand for Big Tech alternatives.
Cape’s first strategic partnership reflects that European focus. Teaming up with Switzerland-based Proton, known for its encrypted email, VPN, and cloud services, Cape now offers subscribers a $1 promotional add-on: six months of Proton’s Unlimited plan. The bundle includes encrypted storage, VPN access, and expanded secure email.
“We did a deep dive on who’s really leading in privacy tech, and Proton was the clear choice,” Doyle shared. “This is just the start of our partnership.”
For now, fewer than 1,000 users are part of Cape’s closed beta, alongside a few hundred Obscura phone owners. General availability for the service is expected later this year, with demand already signaling a growing appetite for privacy-first alternatives in the mobile space.
With rising geopolitical tensions and frequent data breaches across telecom providers, Cape is positioning itself as a much-needed disruptor—one offering privacy and control back to users in a mobile world increasingly designed to strip it away.
