Cape Privacy emerged from stealth today after spending two years building a platform for data scientists to privately share encrypted data. The startup also announced $2.95 million in new funding and $2.11 million in funding it got when the business launched in 2018, for a total of $5.06 million raised.
Boldstart Ventures and Version One led the round, with participation from Haystack, Radical Ventures and Faktory Ventures.
Company CEO Ché Wijesinghe says that data science teams often have to deal with data sets that contain sensitive data and share data internally or externally for collaboration purposes. It creates a legal and regulatory data privacy conundrum that Cape Privacy is trying to solve.
"Cape Privacy is a collaboration platform designed to help focus on data privacy for data scientists. So the biggest challenge that people have today from a business perspective is managing privacy policies for machine learning and data science," Wijesinghe told TechCrunch.
The product breaks down that problem into a couple of key areas. First of all it can take language from lawyers and compliance teams and convert that into code that automatically generates policies about who can see the different types of data in a given data set. What's more, it has machine learning underpinnings so it also learns about company rules and preferences over time.
It also has a cryptographic privacy component. By wrapping the data with a cryptographic cypher, it lets teams share sensitive data in a safe way without exposing the data to people who shouldn't be seeing it because of legal or regulatory compliance reasons.
"You can send something to a competitor as an example that's encrypted, and they're able to process that encrypted data without decrypting it, so they can train their model on encrypted data," company co-founder and CTO Gavin Uhma explained.
The company closed the new round in April, which means they were raising in the middle of a pandemic, but it didn't hurt that they had built the product already and were ready to go to market, and that Uhma and his co-founders had already built a successful startup, GoInstant, which was acquired by Salesforce in 2012. (It's worth noting that GoInstant debuted at TechCrunch Disrupt in 2011.)
Uhma and his team brought Wijesinghe on board to build the sales and marketing team because, as a technical team, they wanted someone with go-to-market experience running the company so they could concentrate on building product.
The company has 14 employees and is already an all-remote team, so the team didn't have to adjust at all when the pandemic hit. While it plans to keep hiring fairly limited for the foreseeable future, the company has had a diversity and inclusion plan from the start.
"You have to be intentional about about seeking diversity, so it's something that when we sit down and map out our hiring and work with recruiters in terms of our pipeline, we really make sure that diversity is one of our objectives. You just have it as a goal, as part of your culture, and it's something that when we see the picture of the team, we want to see diversity," he said.
Wijesinghe adds, "As a person of color myself, I'm very sensitive to making sure that we have a very diverse team, not just from a color perspective, but a gender perspective as well."
The company is gearing up to sell the product and has paid pilots starting in the coming weeks.