Graz-based TACEO, a startup focused on infrastructure for secure computation on encrypted data, has secured €4.8 million in Seed funding. This round was led by Archetype VC with involvement from a16z CSX, Cyber.Fund, A.Capital Ventures, Polymorphic Capital, and various angel investors.
Lukas Helminger, Co-founder and CEO, stated that industries have long needed to compute across private datasets, and the capability to verify encrypted information without revealing data is crucial for transparency in the AI era. The new funds will help scale their technology to address this significant internet challenge.
Founded in 2022 by a team from Graz University of Technology, TACEO is known for the Poseidon hash function and a COVID-19 infection tracker, showcasing scalable privacy-preserving cryptography.
TACEO’s software enables multiple parties to collaborate on sensitive data without exposing it, using a “Private Shared State” model powered by coSNARKs, which combines Multiparty Computation and Zero-Knowledge Proofs for data protection and outcome verification.
The startup demonstrated its technology’s commercial viability with a partnership with Sam Altman’s World by developing software for iris verification, ensuring biometric data of over 14 million people remains encrypted.
Archetype Founder and General Partner, Ash Egan, highlighted the rapid evolution of decentralised compute and stressed TACEO’s role in bringing programmable privacy to the Web3 compute stack. Egan expressed strong conviction in TACEO’s mission and their partnership.
TACEO’s technology promises secure verification for AI LLMs and DeFi, without exposing personal or sensitive information, enhancing privacy and security while enabling smarter AI and secure financial transactions. The new funds will be used to expand TACEO’s team and technology beyond crypto and DeFi into sectors like identity verification, financial services, and AI.