Oxford’s PQShield raises £29m for quantum-proof cybersecurity tech

PQShield, an Oxford firm developing cybersecurity measures to counter the growing threat of quantum computers, has raised £29 million in a Series B funding round.

The round, led by New York-based Addition and with contributions from Chevron Technology Ventures, Legal and General, and Braavos Capital, brings new investors aboard alongside existing backer Oxford Science Enterprises.

Founded in 2018, PQShield’s ‘post-quantum’ products are built by a team of cryptography experts and engineers.

Spanning both hardware and software, they’re used in financial transactions, vehicle connectivity, and military-grade communications, to name a few – with customers including AMD, Microchip Technologies, and Collins Aerospace.

Post-quantum cryptography (PQC) is now a ‘commercial imperative’, says the company – particularly with the rise of harvest-now-decrypt-later tactics.

Ali El Kaafarani, founder and CEO of PQShield, said: “I’m immensely proud to lead our team in shaping the way our digital world is protected against the threats of tomorrow.

“It no longer matters when a quantum computer will arrive that can break current cryptography methods – the need for quantum-resistant encryption is here today, as governments and standards agencies push to protect our most sensitive data.

“We’re already getting our technology into the hands of customers across the supply chain, and today’s funding will enable us to deliver real-world, post-quantum hardware and software upgrades to even more organizations as they move to comply with new global standards.”

The investment comes as the US government’s National Institute of Standards and Technology prepares to publish new PQC standards, co-authored by the team at PQShield.

Todd Arfman of Addition, which led the funding round, added: “As we approach the culmination of the NIST project, we expect newly ratified standards to help drive rapid adoption of PQC across the technology supply chain.

“Led by an industry-leading team with decades of experience, PQShield has quickly established itself as a leading authority in post-quantum cryptography for hardware and software.

“We’re excited to see the business continue to build on its existing commercial success and further enhance its efforts in protecting our digital future.”