Listen to this article
Cy4Data Labs secures $10 million in funding led by Pelion Venture Partners to expand its encryption platform that protects data during active use. The company’s technology keeps information encrypted across storage, transmission, and processing without impacting performance. With existing Fortune 100 clients, it plans to scale operations and showcase its solution at RSA Conference 2025.
$10 Million and a Mission: Why Investors Back Cy4Data Labs Now
Cy4Data Labs has secured $10 million in its first funding round, led by Pelion Venture Partners. The capital injection supports the company’s efforts to broaden access to its data protection platform. With the funding, Cy4Data Labs plans to accelerate go-to-market activities and expand sales and marketing operations.
Lance Smith, Co-Founder and CEO of Cy4Data Labs, stated that the company already generates revenue, serves Fortune 100 clients, and has products in production. He emphasized that the current funding marks a strategic push to deliver their solution to more organizations facing threats tied to artificial intelligence, data misuse, and emerging attack surfaces.
What Makes Cy4Data Labs Stand Out in a Crowded Data Protection Market
Cy4Data Labs has developed a technology that keeps information encrypted not just when stored or transmitted, but even while in active use. This capability aims to reduce exposure risks and eliminate vulnerabilities tied to processing environments.
The company’s encryption model is designed to secure data at the source level, rather than relying on perimeter-based defenses. This method keeps sensitive content inaccessible to unauthorized users, even if systems are compromised or accessed internally.
How the Tech Actually Works Without Slowing Systems Down
Cy4Data Labs integrates with existing infrastructure, maintaining compatibility across databases and SaaS environments. The solution is built to deliver continuous protection while preserving system performance and operational access.
Its platform features a persistent encryption layer, which allows organizations to use encrypted data without needing to decrypt it first. This eliminates typical friction between data security and usability. The architecture also includes:
- Real-time threat detection
- A unique key management framework
- A portable encryption model that works across different environments
Recommended: Springtail Raises $2.5M To Help Companies Scale Postgres Without Changing Their Applications
From Fortune 100 to Startups: Who’s Using This Technology Already
Cy4Data Labs reports an existing base of enterprise clients, including companies within the Fortune 100. Its solutions are currently deployed in production environments, supporting organizations that handle high-value and high-risk data sets.
The company has not disclosed specific customer names but confirms that its tools are operational across varied environments, including SaaS applications and database systems, without altering user workflows.
Why This Matters More Than Ever in the Age of Data Breaches and AI Risks
The ability to keep data protected during active use has become more urgent due to modern digital threats. As artificial intelligence models increasingly consume sensitive datasets and internal actors gain access to operational systems, traditional encryption methods leave critical gaps.
Cy4Data Labs’ approach ensures that data remains encrypted throughout its lifecycle, including processing stages. This makes intercepted data unreadable and removes the need for trust in any single layer of the architecture. The system limits what malicious insiders or external attackers can access, even if they penetrate the network.
What Comes Next for Cy4Data Labs After the $10 Million Boost
Following the funding round, Cy4Data Labs aims to scale distribution and raise market awareness. The company will invest in marketing campaigns and expand its outreach to industries with high compliance requirements and data exposure risks.
The firm also plans to showcase its technology at RSA Conference 2025, where it will invite experts to challenge its claims and test the system’s capabilities. Future updates to the platform are expected to enhance usability across more deployment environments.
Why Persistent Data Encryption May Become the New Standard
Cy4Data Labs’ model of keeping information encrypted during all phases of use represents a shift in how organizations think about data safety. With backing from Pelion Venture Partners and validation through real-world deployments, the company moves into a growth phase.
As more entities evaluate ways to secure sensitive content in dynamic environments, technologies that reduce reliance on decryption during use may become essential. Cy4Data Labs positions itself to meet that demand with a framework already in production across enterprise environments.
Please email us your feedback and news tips at hello(at)dailycompanynews.com
