Niobium, a custom silicon provider specialising in FHE hardware acceleration, has secured more than $23m in new financing.
The company, which develops bespoke semiconductor technology to enable computing on encrypted data, said the oversubscribed round reflects surging demand for next-generation privacy solutions.
The investment was led by a mix of returning and new backers. Returning investors included Fusion Fund, Morgan Creek Capital, Rev1 Ventures and Ohio Innovation Fund. Around 70% of the fresh capital came from first-time investors, notably strategic investor Blockchange Ventures. New participants in the round also included ADVentures, the corporate venture arm of Analog Devices, Inc. (ADI), Korea Development Bank (KDB), JobsOhio Ventures, Rev1 Angels and Silicon Catalyst Ventures.
Niobium builds hardware that supports FHE, a privacy-preserving capability that allows organisations to run computations on encrypted data without ever decrypting it. This approach protects sensitive information and promises mathematically guaranteed privacy. As data volumes grow and emerging technologies such as AI, blockchain and quantum computing accelerate, Niobium argues that traditional encryption methods may struggle to keep pace with evolving threats.
The company plans to use the new capital to develop its second-generation FHE platform, moving from prototype to production-ready silicon. That includes hardware-software co-design, optimisation of compiler tools, and refining its architecture to deliver significantly improved performance. Funds will also support the development of a production ASIC and build customer-facing infrastructure for pilots and early deployment.
The announcement also highlighted growing industry concern around quantum risk. FHE is considered resistant to potential breakthroughs in quantum computing that could weaken existing encryption standards. Niobium intends to deepen its Early Access Programme and broaden partnerships in areas including hyperscale cloud, blockchain and federated learning.
“This financing is a vote of confidence not only in our progress, but in the market readiness for a new compute paradigm,” Niobium CEO Kevin Yoder said. “The rise of AI, quantum computing, and distributed computing has expanded possibilities and risks in the data economy. Niobium is building the hardware foundation for the encrypted future, where privacy is mathematically guaranteed.”
Matt Immerso, general partner at Blockchange, said, “There is no encryption standard more secure than fully homomorphic encryption (FHE). Niobium’s team is building a foundational chip for the future of cryptographic infrastructure. It could make FHE truly performant, secure, and scalable. Their rare combination of deep cryptography expertise and high-volume semiconductor manufacturing experience puts them closer to commercializing this technology than anyone has ever been.”
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