Mobile Encryption Firm Silent Circle Raises $50 Million
Geneva-based Silent Circle, an encrypted communications company specializing in privacy-focused services and software has raised $50 million in a round of funding.
Silent Circle, a firm that has notably endeavored to secure mobile communications has revealed that it has raised $50 million in a Series C funding round.
Founded in 2012 out of Geneva, Switzerland, the company specializes in privacy-focused services and software, including phone applications that provide secure file sharing, messaging and calling. In 2014, a partnership with hardware manufacturer Geeksphone, resulted in the release of Silent Circle’s much-publicized Blackphone. The phone and technology were lauded for its pro-privacy approach by advocates .Last year, Geeksphone was acquired entirely by Silent Circle and launched the $800 Blackphone 2.
However, the products found muted success, primarily due to free and popular applications launched by the likes of Facebook through Whatsapp and Apple, with end-to-end encryption technology. Furthermore, TechCrunch cites court documents that reveal that the first iteration of the Blackphone failed to reach sales expectations, leaving Silent Circle no choice but to scale down its software operations and operational costs. Co-founder Jon Callas, who joined Apple recently, departed the company and so too did a number of other employees to staff cuts during cost-cutting.
Still, Silent Circle had raised nearly $80 million in funding, before the new influx of the recent $50 million. The latest round of funding was led by Santander Bank, with the new capital used to “expand product development, customer service, business development and marketing activities while eliminating its debt.”
Silent Circle Co-founder and Chairman Mike Janke stated:
[The] announcement is a key milestone as we continue to set the bar for what’s required in secure mobile communications.
Our growth in new customers, coupled with expanding engagements with our existing enterprise and governmental clients, underscores the pressing need for our Enterprise Privacy Platform and the business-critical value proposition it embodies.
Featured image from Silent Circle.