Mobile networks continue to be a major target for cybersecurity breaches, and Chinese hacking group Salt Typhoon's persistent attacks on multiple carriers are only the latest known examples. Amidst this landscape, Cape, a Washington, DC-based mobile carrier startup, is taking a novel approach to addressing the problem by building a service that provides a more secure, private alternative.

Cape's service is designed to not collect any data on users, even its website doesn't have a cookie gate. Today, the company is announcing an open beta of its MVNO mobile service, which comes in the form of a $99/month subscription plan. This development is accompanied by a partnership with Proton, the provider of encrypted email, VPN, and cloud services, and a $30 million funding round.

The $30 million funding is broken down into $15 million in equity tacked on to its Series B from A*, Costanoa, Point72, XYZ Ventures, and a further $15 million in the form of 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. Although Cape is not disclosing its valuation, the funding is notable given the increased focus on startups building military, defense, and security services amid shifting geopolitics.

Cape's products and growth are a rare example of how some of that evolution is playing out at a consumer level. The company's new plan comes on the heels of its emergence from stealth last year with $61 million in funding, launching a $1,500 phone called the Obscura, designed expressly for military and government people and others facing elevated threats. In January 2025, Cape made its first move to launch a service for consumers, which saw all open slots in the closed beta fill up in four hours.

CEO John Doyle attributed the rapid pace of sign-ups to "a lot of interest from the broader consumer market, folks who have a general desire to take back some of their privacy, take back control of their digital identity as they connect to global networks, but maybe don't want to invest at the level required to buy an Obscura phone." This led to today's open beta announcement.

The plan includes unlimited voice minutes, texts, and data, as well as encrypted voicemail. Additionally, Cape provides protection against two emerging cellular threats: SIM swapping, using cryptographic protection to keep someone from hijacking your number, and advanced signaling protection, which is in reference to side channel attacks via telephony signaling protocol Signalling System 7.

Doyle added that general availability for its phone plan will come later this year. Currently, there are under 1,000 users on its closed beta, and a couple of hundred Obscura phone owners. Cape's service is anchored on UScellular, and the plan is to introduce roaming services to its users to extend to other countries, as well as to introduce MNVO-based plans in other countries.

Europe has proven to be a big market for privacy-first services, as well as those that provide alternatives to engaging with Big Tech. This could present an interesting addressable market for a startup like Cape. In fact, Cape is leaning into that European penchant for privacy by partnering with like-minded companies. The first partnership is with Switzerland-based Proton to drive sign-ups to the latter company's premium (paid) offerings.

Those who sign up to a Cape $99/month phone plan can pay $1 to add on six months of Proton's Unlimited plan, which includes encrypted cloud storage, VPN, expanded secure email, and more. Doyle described the offer as "the first version" of a partnership between the two companies, which was formed after a rigorous survey of the field to determine the clear leader in terms of credibility and advanced technology.

As Cape continues to grow and expand its services, it will be interesting to see how its novel approach to mobile security resonates with consumers. With the increasing awareness of privacy concerns and the need for secure alternatives, Cape's timing couldn't be more opportune.