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Based in San Jose, California, Cy4Data Labs develops data security software that maintains persistent encryption on sensitive information while it is actively being processed or used. The company's core platform utilizes artificial intelligence and machine learning for threat detection to prevent unauthorized access during active operations, ensuring protection even if traditional network perimeters are breached. The software is built to meet strict United States Department of Defense requirements and serves clients across national security, enterprise, healthcare, and critical infrastructure sectors. In April 2025, the enterprise secured $10 million in Series A funding led by Pelion Venture Partners to accelerate its sales and marketing initiatives. The organization recently expanded its leadership by appointing retired United States Army Brigadier General Paul G. Craft to its advisory board. Cy4Data Labs was founded in 2023 by Lance Smith and Todd Carper.
Cy4Data Labs has raised $10.0M across 1 funding round.
Cy4Data Labs has raised $10.0M in total across 1 funding round.
Cy4Data Labs is a San Jose-based cybersecurity company developing Cy4Secure, a flagship solution that provides persistent, in-use data protection through atomic-level encryption, making data secure at rest, in motion, and during active processing without decryption.[1][2][3] It serves organizations facing advanced threats like ransomware, agentic AI attacks, and quantum computing risks, solving the core problem of data exposure by rendering stolen data unusable via unique per-field encryption keys and real-time threat detection.[1][2][3] The company raised $10M in April 2025, led by Pelion Venture Partners, to fuel sales and marketing growth, and earned a Silver Medal in the 2025 Datos Insights Cybersecurity Impact Awards for ransomware protection.[1][3]
This breakthrough addresses vulnerabilities in traditional encryption, enabling quantum-proof security that protects governments, industries, and academia without performance trade-offs.[2][3]
Cy4Data Labs was co-founded by Lance Smith, who serves as CEO, though specific founding year and detailed backstory remain undisclosed in available sources.[2][3] The company emerged to pioneer a new data protection model amid rising threats from AI-driven attacks and looming quantum computing ("Q-Day"), focusing on making encryption practical across all data states.[1][2] Early momentum includes the April 2025 $10M funding round led by Pelion Venture Partners, which validated its technology and accelerated commercialization, followed by the Datos Insights award in October 2025 for its ransomware-defeating capabilities.[1][3]
Cy4Data Labs rides the convergence of agentic AI proliferation and quantum computing threats, where traditional perimeter defenses fail against autonomous, perimeter-agnostic attacks and "Q-Day" decryption risks.[2] Timing is critical as ransomware disrupts critical infrastructure (e.g., air travel, healthcare, manufacturing), and quantum advancements amplify AI's destructive potential—Cy4Secure counters both by securing data intrinsically.[2][3] It influences the ecosystem by devaluing breaches (demonetizing data), streamlining governance, and enabling trust in AI/quantum eras, positioning it as a foundational layer for secure digital infrastructure in high-stakes sectors.[1][2][3]
Cy4Data Labs is poised to scale post-$10M funding, expanding Cy4Secure adoption amid escalating AI-quantum threats, with potential for partnerships in government and enterprise ransomware defense.[1][2][3] Trends like agentic AI evolution and quantum breakthroughs will drive demand for its atomic encryption, potentially evolving its role from innovator to industry standard-setter. As data breaches grow costlier, its in-use protection could redefine cybersecurity, tying back to its core mission of practical, unbreakable data security in an exposed world.[1][2][3]
Cy4Data Labs has raised $10.0M across 1 funding round. Most recently, it raised $10.0M Series A in April 2025.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Apr 1, 2025 | $10M Series A | — | AXA Strategic Ventures, Pelion Venture Partners | Announced |
Cy4Data Labs has raised $10.0M in total across 1 funding round.
Cy4Data Labs's investors include AXA Strategic Ventures, Pelion Venture Partners.