Lattica, an Israeli startup offering a groundbreaking platform leveraging Fully Homomorphic Encryption (FHE) to enable secure and private AI deployment in the cloud, has officially emerged from stealth mode with $3.25 million in pre-seed funding.
The funding round was led by Konstantin Lomashuk’s Cyber Fund, with notable participation from angel investor Sandeep Nailwal, co-founder of Polygon Network and Sentient: The Open AGI Foundation, along with other strategic backers.
Lattica’s FHE-based infrastructure allows enterprises to run AI models on encrypted data without compromising user privacy or data security—addressing one of the most pressing challenges in modern cloud computing and artificial intelligence applications.
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This strategic investment positions Lattica to lead the future of privacy-preserving AI, targeting industries like healthcare, finance, and regulated enterprise sectors where data protection is critical.
Led by founder and CEO, Dr. Rotem Tsabary, who holds a PhD in lattice-based cryptography from the Weizmann Institute of Science, Lattica takes advantage of the foundational mathematical similarities between FHE and machine learning to offer a hardware-agnostic, cloud-based platform that utilizes FHE to deliver secure and private use of AI.
“By combining the advancements of hardware acceleration with software-based optimization, we realized that not only could we improve FHE efficiency to the point of commercial viability, but use it to solve critical data dilemmas holding back AI’s adoption in sensitive industries,” said Dr. Rotem Tsabary, founder and CEO of Lattica. “We’re enabling practical FHE by developing a solution that is tailor made for neural networks.”
Data privacy and security anxieties have significantly restricted AI adoption in critical industries such as healthcare, finance, and government. Cisco’s 2025 AI Briefing: CEO Edition highlights this, with 70% of surveyed CEOs expressing network security concerns due to increasing AI use, and 34% identifying security as a key barrier.
Addressing this critical challenge, Lattica’s technology introduces a vital new standard. By capitalizing on recent breakthroughs in AI acceleration, Lattica operationalizes Fully Homomorphic Encryption (FHE) – the long-sought “holy grail” of cryptography that keeps all AI communication encrypted without decryption. This overcomes FHE’s traditional computational inefficiencies, paving the way for secure AI adoption.
