Quantum Xchange, a leader in quantum-safe products and services for crypto agility and quantum readiness, today announced that it has completed the initial close on $13.5 million of Series A capital at a $59 million post-money valuation, according to a company statement. This follows the company’s initial funding of $10 million.
The Series A capital will be used to scale operations, continue to innovate on the Phio family of solutions, and help Fortune 1,000 businesses and government agencies prepare for the looming quantum threat – when a quantum computer has the potential to break the encryption on which most enterprises, digital infrastructures, and economies rely.
In addition to the new financing, Quantum Xchange is pleased to announce an expanded leadership team to meet the vast market opportunity for protecting data in motion now and into the quantum era. The company has appointed Eddy Zervigon as its new Chief Executive Officer (CEO), Holly Neiweem as Chief Financial Officer (CFO), and Shahryar Shaghaghi as Chief Technology Officer (CTO).
The leadership changes come at a pivotal time for the company whose product line and strategic direction has undergone significant expansion opportunities with the introduction of Phio Trusted Xchange (TX) in late 2019. The first-of-its-kind, crypto-agile key distribution system supports quantum keys in any format and is uniquely capable of making traditional keys quantum-safe now, immediately improving an organization’s security posture while preparing them in an easy and affordable manner for the looming quantum threat. For organizations with long shelf-life data to protect, Phio TX safeguards against the immediate threat of harvesting attacks – when encrypted data is stolen and stockpiled, waiting for the day when a quantum computer can break the encryption.
Because Phio TX can support both math and physics-based encryption techniques – most notably Post-Quantum Cryptographic (PQC) algorithms, Quantum Key Distribution (QKD), and Quantum Random Number Generated (QRNG) keys – it straddles the QKD market, expected to reach $6.17 billion by 2025[i] and the PQC market projected to reach $9.5 billion in 2029[ii].
Zervigon brings a wealth of financial and leadership experience, having led early stage investments in such technological trailblazers as DigitalGlobe and Bloom Energy for Morgan Stanley. Recently, he has advised and led investments in several start-ups such as Enovix Corporation and C3Nano. He currently serves on the boards of Bloom Energy and Maxar Technologies, both traded on the New York Stock Exchange.
“We are extremely grateful to Zervigon’s predecessor John Prisco for his tenure with the company and cementing Quantum Xchange as the U.S. market leader in quantum communications,” said Hal Chapel, founding CEO and board member of Quantum Xchange. “The company has done great things to date and we are confident that under Eddy’s leadership this tradition will continue. He brings great vision, financial prowess, and a proven track-record in identifying and nurturing young companies in emerging markets.”
“In a short period of time, Quantum Xchange has solidified its place as a cybersecurity pioneer helping to define and create the rapidly emerging quantum-safe security market,” said newly appointed CEO Eddy Zervigon. “As awareness of the growing quantum-computing threat increases and harvesting attacks continue, organizations are realizing that they can’t afford not to act. This presents an enormous opportunity for Quantum Xchange. With its superior technology, experienced people, and trusted partners the company is primed to become the de facto leader for securing data in transit now, and in the quantum era. I’m thrilled to be at the helm and excited for what’s ahead.”
To continue its impressive track-record building and deploying quantum-based encryption solutions required by security and risk-intense industries such as telecommunications, government and finance, Quantum Xchange has hired Shahryar Shaghaghi as CTO. Shaghaghi brings more than 30 years of technology consulting and IT risk management expertise to his role as CTO having held leadership positions with such global firms as Citibank, Accenture, PwC, and Deloitte. As CTO he will oversee the development and execution of Quantum Xchange’s technology roadmap, supporting the company’s broader crypto-agile infrastructure strategy, exceeding customers’ expectations through continued product innovation, and contribute to the company’s ongoing leadership in the quantum technologies ecosystem.
Former CTO Gene Savchuk, inventor of Phio TX, will continue to work closely with Shaghaghi and the engineering team at Quantum Xchange as its Chief Product Evangelist and Strategic Advisor. Both executives are recognized thought leaders in cybersecurity, Savchuk through his numerous speaking engagements and industry awards received during his tenure with Quantum Xchange and as the co-founder of Fidelis Cybersecurity, and Shaghaghi through his acclaimed role as Citigroup’s head of IT risk management implementations of the largest and most complex information security programs globally, examined and passed by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board (FRB).
As CFO, Holly Neiweem will oversee all planning, implementation, and management of finance activities at Quantum Xchange as well as daily operations. Additionally, she will work closely with Zervigon on investor relations, corporate governance, and partnership compliance as the company executes an aggressive growth strategy over the next 12 months.
Finally, to further advance the company’s mission, strategic positioning, and corporate governance, Quantum Xchange is currently recruiting two independent board positions, one of which will be the lead director.
About Quantum Xchange
Quantum Xchange gives commercial enterprises and government agencies the ultimate solution for protecting data in motion. Its key distribution system, Phio Trusted Xchange (TX), is uniquely capable of making existing encryption keys quantum safe and supports both post-quantum crypto (PQC) and Quantum Key Distribution (QKD) for true crypto agility and quantum readiness. With Phio TX’s dynamic security infrastructure in place, organizations can enhance their existing encryption environment, meet evolving data security and privacy requirements, select the level of protection needed based on their risk tolerance, and if desired seamlessly scale to QKD at any time, across any distance, between multiple transmission points. To learn more about being quantum-safe today and quantum-ready for tomorrow’s threats, visit QuantumXC.com or follow us on Twitter @Quantum_Xchange #BeQuantumSafe.