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Israeli encryption tech startup CyberRidge nets $16m series A

CyberRidge, an Israeli startup developing photonic encryption technology, has raised US$16 million in a series A round led by Arkin, Redseed VC, Elron Ventures, and a European Innovation Council grant.

Founded in 2022 by Professor Dan Sadot, the company claims its hardware-based system turns data into optical noise, making it resistant to interception or decryption, including by quantum computers.

Its technology is being tested by organizations in Europe, Singapore, and Australia, as well as by a unit of the Israeli military.

CyberRidge employs about 20 people in Israel, with additional staff in the US and Switzerland.

The startup previously raised US$10 million from Awz, a Canadian-Israeli investment group, and is undergoing a strategic revamp after the funding round.

🔗 Source: Calcalist

🧠 Food for thought

Implications, context, and why it matters.

Photonic encryption lacks independent validation for enterprise

  • CyberRidge’s hardware turns data into optical noise. No public record exists for Federal Information Processing Standard (FIPS) 140-3 or National Information Assurance Partnership (NIAP) Common Criteria status, which many U.S. federal and defense buyers require 1.
  • Under FIPS 140-3, NIST runs the Cryptographic Algorithm Validation Program (CAVP) for algorithms and the Cryptographic Module Validation Program (CMVP) for modules 1. Common Criteria relies on licensed labs and profiles such as Network Device collaborative Protection Profile (NDcPP). Certifications often include code review and carry recognition in 36 nations 1.
  • Trials in Europe, Singapore, and Australia, plus one Israeli military unit, signal interest. They do not give independent numbers on throughput, latency, or resistance to quantum attacks that buyers need.

Telecom integrators and MSPs time offers for NIS2

  • In the EU, the Network and Information Security Directive (NIS2) had to enter national law by Oct. 17, 2024. Fines can reach €10 million or 2% of global turnover for essential entities 2.
  • NIS2 asks for policies on cryptography and, where suitable, encryption. Covered sectors include energy, transport, healthcare, and digital infrastructure 3.
  • Service providers can pair encryption-readiness reviews with compliance roadmaps. They can map Article 21(a–j) to each client’s stack and add monitoring 3.
  • Original equipment manufacturers (OEMs) can package photonic modules with Federal Information Processing Standard (FIPS) 140-3 validation help. For U.S. federal use, FIPS 140-3 or 140-2 is mandatory for cryptographic products, and a listing on the Department of Defense Information Network Approved Products List (DoDIN APL) speeds DoD network buys 1.

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