Silent Circle builds encrypted communications software and produced a security-focused Android smartphone called the Blackphone. The company has shifted from a prosumer hardware focus to an enterprise privacy platform combining software services such as Silent Phone secure calling, messaging and file sharing, encrypted calling plans that extend secure calling to non-subscribers, and a web-based admin console for BYOD management. After buying out its Blackphone hardware partner the first-generation device underperformed, forcing the company to rely more on its software business and cut operational costs, including significant staff reductions. Key leadership changes include co-founder Jon Callas departing for Apple and interim CEO Matt Neiderman (formerly general counsel), while Mike Janke remains chairman; other senior employees have also left. Silent Circle has been involved in litigation with former partner Geeksphone over an alleged $5M non-payment; the company says it intends to continue its claim and defend against Geeksphone's claim. The company says new financing will be used to eliminate debts and to invest in product development, customer service, business development, and marketing. Silent Circle develops privacy-first encrypted communications software and the Blackphone line of hardened Android devices (PrivatOS). The company says it has agreed to buy out its hardware JV partner Geeksphone to take 100% ownership of SGP Technologies and the Blackphone product set, citing operational efficiencies and an integrated product roadmap. Silent Circle plans to lean into enterprise sales and will unveil an "enterprise privacy ecosystem" using ZRTP cryptographic protocols at Mobile World Congress. The company confirmed it has raised $50 million in new financing to fuel its next stage of growth. Silent Circle has previously announced plans for additional hardware (a Blackphone tablet) as part of its portfolio. It is unclear whether Geeksphone will continue manufacturing hardware under license following the buyout. Silent Circle pivoted from encrypted email to secure telephony after the NSA revelations and is building Blackphone, a security-hardened Android handset developed with Spanish partner Geeksphone. Blackphone bundles privacy-focused apps (Silent Phone, Silent Text), secure cloud storage, a VPN-based non‑trackable search, and a wi‑fi anonymizer to lower barriers to adopting security. The device went up for pre-order and is due to launch in June; pre-orders have ‘‘exceeded expectations’’ though no figures were disclosed. Silent Circle is relocating its global headquarters from the Caribbean to Switzerland and retains offices near Washington, D.C. and in London, plus data centers in Canada and Switzerland, with employees staged around the world. The company says it will use the new funding to meet ‘‘overwhelming demand’’ for Blackphone and to accelerate growth in the secure communications market.

Total raised

$130M

Funding rounds

3

Latest round

Series C

Latest activity

Jul 2016