Secure computation platform startup Pyte announced today that it has raised $5 million in new funding to commercialize its technology in new industries, with a primary focus on highly regulated sectors such as financial services and healthcare.

Founded in 2020, Pyte offers security data collaboration solutions that allow organizations to collaborate on sensitive data while maintaining complete control and privacy. The company’s technology allows for computation on encrypted data without decryption at any point in the data lifecycle.

The platform seeks to address the issue where organizations that rely on data collaboration, such as finance, healthcare, government and technology, face challenges in maintaining privacy, security and compliance, significantly increasing data storage and overall business costs.

Pyte addresses the privacy, security and compliance concerns of enterprises that want to use and collaborate on their sensitive data. The company claims its Secure Multiparty Computation technology makes it easy to run simple or complex artificial intelligence or machine learning computations on encrypted data without the sensitive data ever needing to be moved or decrypted, ensuring against leaks and sharing.

“While companies across industries pursue data collaboration for various reasons – from consumer brands refining ad campaigns to fintech enterprises revolutionizing digital payments – conventional data-sharing methods often compromise privacy, intellectual property and security by centralizing data into vulnerable environments,” said founder and Chief Executive Sadegh Riazi.

One of Pyte’s key services, its SecureMatch platform, launched in 2023, ensures that customer data remains protected and encrypted throughout the computation process. Pyte achieved System and Organization Control 2 compliance for the platform, underscoring its robust data controls related to security, availability, processing integrity, confidentiality and privacy.

“Pyte’s solutions, utilizing advanced developments in cryptography, allow companies to pursue data collaboration opportunities with the confidence that the data will not be compromised,” said Lynne Schneider, research director for Data as a Service & Data Marketplaces at IDC, said in a statement.

Myriad Venture Partners LLC led the funding round, with Innovation Endeavors LLC, Liberty Mutual Strategic Ventures and Pillar Ventures LLC also participating. Dean Mai, co-founder and managing director of Myriad Ventures, will join Pyte’s board.

“Pyte enables unprecedented levels of secure data collaboration, particularly in the industries where data security and compliance are paramount,” Mai said. “This is a remarkable feat of cryptographic engineering and we’re excited about the immense value of data that organizations across industries will unlock with Pyte.”

Including the new funding, Pyte has raised $12 million to date.

Image: Pyte