Check out the pitch deck the startup Pyte used to raise $5 million to solve a key challenge for data clean rooms
- Pyte raised $5 million in an extension to its seed funding round.
- The company aims to make data collaboration between companies faster and more secure.
- The round was led by Myriad Venture Partners. Check out the key slides from the investor pitch deck.
Pyte, a cryptographic data collaboration startup, said Wednesday it had raised $5 million in an extension of its seed funding round.
The company said it intends to use the fresh funds to continue testing its product-market fit with Fortune 500 companies before moving into its revenue growth phase.
Founded in Los Angeles in 2020, Pyte offers software that lets different companies perform data collaboration, while ensuring all the data involved is kept secure through multi-party computation.
In 2022, Pyte was granted a US patent for its technology, which allows for the secure collaborative processing of private data.
Companies are increasingly using software called data clean rooms to share data securely with one another. For example, an up-and-coming energy drink company might want to use a data clean room with an entertainment brand to see where their customer bases overlap and figure out which music festivals to sponsor.
The data clean room market includes major players like AWS, Snowflake, and LiveRamp. Experts predict that usage of the technology is set to rise further as the rollout of global privacy regulations and the deprecation of identifiers like cookies and mobile IDs make it harder for advertisers to target consumers and measure the effectiveness of their campaigns.
Pyte CEO Sadegh Riazi said that many data clean rooms, in their current state, make trade-offs between utility and privacy. Some exchange data in plain text, which could violate privacy regulations. Others use methods to mask the data to remove sensitive information, which could impact the accuracy of data matching. And others require that all companies involved in the clean room use the same cloud provider.
Pyte says its technology keeps data in an encrypted state at all times and can work across any cloud platform without any data being moved while keeping trade secrets confidential. The company says this software also processes data between three and 10 times faster than competitive cryptographic-based companies.
The company makes money by charging a software licensing fee that changes in cost depending on the number of partners a company wants to collaborate with. Riazi said that Pyte aims to complement rather than compete with existing clean rooms.
"We are not pricing it based on consumption," Riazi said. "We think that companies should be free to use this as much as they want."
Pyte's latest round was led by Myriad Venture Partners, with participation from Innovation Endeavors, Liberty Mutual Strategic Ventures, and Pillar VC. It brings Pyte's total funding to more than $12 million.
Myriad Venture Partners cofounder Dean Mai said his firm first came into contact with Pyte in 2022 and watched the company hit "tremendous engineering milestones" that prove it can process data at the kind of scale required by large enterprises.
"Now they're on this real path of a go-to-market strategy," Mai said. "We're trying to open those doors at the right time."
Check out the key slides from the pitch deck that helped Pyte raise a $5 million seed round extension.