Niobium Secures $5.5M Funding for Homomorphic Encryption Chip Development

US startup Niobium Microsystems has successfully secured $5.5 million in a seed funding round after completing the development of a groundbreaking chip for full homomorphic encryption (FHE). This innovative chip is currently being manufactured using the 12nm low power process at Global Foundries in the United States, marking a significant milestone as the first commercial implementation of FHE technology. According to Kevin Yoder, the CEO of Niobium, this achievement represents a major breakthrough in the field of data security.

Looking ahead, Niobium is already planning for future funding rounds to support the design and development of the next generation chip. This upcoming chip will feature a custom instruction set architecture and a highly parallel array of multiple accumulate units. Yoder mentioned that the next funding round, likely to be in the range of $30 million to $40 million, will be crucial in advancing the technology further.

Yoder explained, "The primary objective of the seed funding is to expand our team with additional software engineers and marketing professionals to engage potential customers prior to the chip's completion. We are thrilled to have already garnered interest from five to six companies willing to participate in our early access program, which will provide valuable feedback for us before the chip is finalized."

The recent funding round was led by Fusion Fund, a prominent venture capital firm specializing in technology companies that leverage data advantages. As part of this investment, Niobium welcomed Shane Wall, a partner at Fusion Fund and former CTO of Hewlett Packard, to its board. Other notable investors, including Morgan Creek Capital, Rev1 Ventures, Ohio Innovation Fund, and Hale Capital, also contributed to the funding.

Yoder shared, "Our journey began when we spun out of Galois R&D company, armed with several government contracts and a partnership with DARPA that propelled us into the realm of FHE technology. The successful tapeout of our accelerator chip two months ago has set us on a path to deliver the final product to customers by the end of the year."