Silence Laboratories, a cryptographic security startup specializing in infrastructure built on multiparty computation (MPC) to safeguard enterprise data, announced the closure of a $4.1 million funding round. The investment, co-led by Pi Ventures and Kira Studio, brings the total raised by the company to $6 million, including contributions from angel investors. These funds will fuel team expansion and bolster research and development efforts.
Employing MPC, a subset of cryptography, Silence Laboratories facilitates secure collaboration among two or more parties without compromising sensitive information to unauthorized entities. Founded in 2021 by Dr. Jay Prakash (CEO), Dr. Andrei Bytes (CTO), and Dr. Tony Quek, Silence emerged from over a decade of research and development in applied cryptography and application security. Initially focused on multifactor authentication (MFA), the company transitioned into a cryptographic security firm after identifying a product-market fit in privacy-preserving decentralized authorization and computation.
Consumer apprehensions regarding data privacy are on the rise, prompting global regulatory bodies to enforce stringent data protection measures. As a result, enterprises face the imperative of safeguarding collected data from potential breaches by malicious actors.
Silence Laboratories offers two MPC-based products: Silent Shard and Silent Compute. Silent Shard, audited by security firm Trail of Bits, empowers enterprises and users to mitigate the risk of exposing sensitive private keys and implement advanced authorization rules. Meanwhile, Silent Compute enables secure collaboration on data processing without divulging private data to third parties, fostering compliance and trust.
Operating on a B2B licensing model, Silence targets digital asset enterprises, financial and healthcare organizations, and telecommunication companies. With over 20 enterprise clients, including BitGo, MetaMask, and EigenLayer, the company anticipates further partnerships across various sectors, such as finance, anti-money laundering, and healthcare.
Silence Laboratories generates approximately $500,000 in annual recurring revenue, with pricing tailored to cater to the needs of different customer segments. Larger enterprises with specialized features, medium-scale businesses, and early-stage companies each receive pricing structures commensurate with their requirements.
The integration of MPC capabilities by prominent crypto firms through acquisitions underscores the growing importance of privacy-enhancing technologies in the market. The burgeoning market for privacy-enhancing technologies, projected to reach $25.8 billion by 2033, reflects the increasing demand for robust data protection measures.
Anurag Arjun, founding partner of Kira Studio and former co-founder of Polygon, praised Silence Laboratories for its cryptography expertise and groundbreaking products in privacy and authentication infrastructure, emphasizing the significant role of privacy-preserving infrastructure in conjunction with blockchain and fintech platforms.