According to Business Insider, Israeli startup CyberRidge has emerged from stealth with $26 million in total funding to protect data traveling through subsea internet cables. The company’s technology manipulates light to conceal data as it moves through fiber-optic cables, making any stolen information appear as “random noise” to adversaries who might cut and tap the cables. CEO Dan Sadot, a professor at Ben-Gurion University with nearly 30 years of optical communication experience, explained that their hardware box sits at each cable end and uses a “photonic key” that changes every fraction of a second. The funding includes a $10 million seed round led by Awz Ventures and a $15 million extension from Arkin Capital, Redseed VC, and Elron Ventures, with plans to move from prototype to full production by March 2026. This emerging approach to physical layer security represents a significant evolution in how we protect critical infrastructure.
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The Looming Quantum Decryption Threat
What makes CyberRidge’s approach particularly timely is the growing concern about encryption vulnerabilities in the quantum computing era. While current encryption methods are secure against classical computing attacks, intelligence agencies and sophisticated adversaries are known to practice “harvest now, decrypt later” strategies. They capture encrypted data today with the expectation that future quantum computers will be able to break today’s encryption standards. This creates a massive vulnerability for financial transactions, government communications, and corporate secrets traveling through the world’s internet backbone. The fact that CyberRidge’s technology addresses this specific threat vector—physical interception of data in transit—shows sophisticated understanding of where future security battles will be fought.
Why Subsea Cables Are Critical Infrastructure
Most people don’t realize that approximately 99% of international data traffic travels through subsea fiber-optic cables, making them arguably the most critical piece of global infrastructure after shipping lanes. These cables, often no thicker than a garden hose, carry trillions of dollars in financial transactions daily and form the backbone of global commerce. The physical vulnerability of these cables has been demonstrated repeatedly—from accidental damage by ship anchors to suspected state-sponsored tapping operations. What’s particularly concerning is that many of these cables pass through politically unstable regions or international waters where legal protections are minimal. The concentration of global data flow through these chokepoints creates systemic risk that has largely been addressed through redundancy rather than true security.
The Hardware Deployment Hurdle
While CyberRidge’s technology sounds promising, the practical challenges of deploying hardware-based security solutions cannot be overstated. Each cable landing station—where subsea cables connect to terrestrial networks—would need to install and maintain these specialized boxes. This creates significant operational complexity for telecommunications providers who already struggle with legacy infrastructure compatibility. The company’s flexible business model addressing these concerns through purchase, leasing, and subscription options shows they understand the adoption barriers. However, the real test will be whether major cloud providers and telecom giants are willing to retrofit existing infrastructure versus waiting for new cable deployments to incorporate such technology. The March 2026 production timeline suggests they’re taking a measured approach to scaling.
Where This Fits in the Security Ecosystem
CyberRidge appears to be operating in a relatively niche but increasingly important space between traditional cybersecurity and physical infrastructure protection. Their approach of adding security at the optical layer rather than just the data layer represents a fundamental shift in thinking. Rather than competing with encryption companies, they’re creating a complementary layer of protection that works alongside existing security measures. This is similar to how noise injection and signal obfuscation techniques have been used in other security contexts, but applying it to fiber optics at this scale is innovative. The involvement of Israeli intelligence in encouraging the technology’s commercialization suggests this addresses recognized national security concerns, which could accelerate adoption in government and financial sectors.
Realistic Adoption Timeline and Challenges
The road from $26 million in funding to widespread adoption will be challenging. Critical infrastructure providers are notoriously conservative about implementing unproven technologies, especially when they involve hardware modifications to existing systems. The company will need to navigate complex certification processes, demonstrate reliability under real-world conditions, and likely face skepticism from network engineers accustomed to traditional approaches. However, the growing awareness of quantum threats and increased geopolitical tensions around digital infrastructure create a favorable environment for solutions that address physical layer vulnerabilities. If CyberRidge can secure even a few major cloud providers or international banks as early customers, they could establish the reference implementations needed for broader market acceptance.
