Cy4Data Labs raises $10M to expand encrypted-in-use data security solution – News

Data protection startup Cy4Data Labs Inc. announced today that it has raised $10 million in new funding to accelerate growth in sales and marketing.

Founded in 2024, Cy4Data Labs offers a data security solution called Cy4Secure that ensures that data remains encrypted and protected not only at rest and in transit but also while in use. The approach secures data during active processing, preventing unauthorized access even if traditional security perimeters are breached.

The main idea behind the solution is that by maintaining encryption throughout the data lifecycle, Cy4Secure renders stolen data unusable to attackers, addressing data security vulnerabilities that conventional security measures often overlook.​

Cy4Data’s solution uses in-situ data protection that allows data to remain encrypted while being natively used within applications. Doing so eliminates the need for decryption during processing, enhancing security without compromising performance.

The solution includes support for various encryption standards, such as U.S. National Institute of Standards and Technology-approved AES-256 and advanced 800-bit streaming ciphers to provide hardened data encryption that meets the highest standards.

Along with encryption, Cy4Secure offers artificial intelligence and machine learning algorithms to detect and block unauthorized access attempts, helping prevent insider threats and unauthorized data sharing. The solution continuously monitors for suspicious activities to enhance the security posture of organizations and ensure that data remains protected against a wide range of threats.

Cy4Secure also addresses the challenges posed by technological advancements, such as quantum computing, with quantum-resistant encryption that ensures that data remains secure even as new computational capabilities emerge.

Pelion Venture Partners led the funding round.

“We’re not just protecting data, we’re changing the rules of how it can be used securely,” said Lance Smith, co-founder and chief executive of Cy4Data Labs. “This funding allows us to accelerate our go-to-market efforts and get our technology into the hands of organizations that desperately need it, especially as AI, cyber warfare and quantum computing reshape the threat landscape.”

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