Lattica secures $3.25 million to boost private AI with FHE

Lattica has announced its emergence from stealth mode and raised $3.25 million in pre-seed funding to bring Fully Homomorphic Encryption (FHE) to cloud-based artificial intelligence applications.

The funding round was led by Cyber Fund, the investment firm of Managing Partner Konstantin Lomashuk, with additional participation from angel investor Sandeep Nailwal, who is a co-founder of both Polygon Network and Sentient: The Open AGI Foundation.

Lattica's technology aims to address persistent privacy and security challenges in sectors such as healthcare, finance, and government, where organisations are hesitant to adopt AI over concerns about sensitive data exposure. Referencing the Cisco 2025 AI Briefing: CEO Edition, the company highlighted that 70% of surveyed CEOs are worried about their network security due to increasing AI use, and 34% see security as a major obstacle to AI adoption.

FHE, which allows encrypted data to be queried by AI models without decryption, has long been considered a desired goal in cryptography, but has until now suffered from computational inefficiencies. Lattica claims it has managed to operationalise FHE by leveraging the latest advancements in the AI acceleration stack, making use of acceleration techniques that improve FHE's commercial viability.

Dr. Rotem Tsabary, Founder and Chief Executive Officer at Lattica, holds a PhD in lattice-based cryptography from the Weizmann Institute of Science and leads a team focused on the mathematical similarities between FHE and machine learning to build a cloud-based, hardware-agnostic platform for private AI computation.

Central to Lattica's solution is the Homomorphic Encryption Abstraction Layer (HEAL), a cloud-based service designed to enhance FHE's performance and streamline its adoption. HEAL operates as an interface connecting FHE-equipped applications with a variety of computing hardware, including GPUs, TPUs, CPUs, and purpose-built accelerators such as ASICs and FPGAs.

"By combining the advancements of hardware acceleration with software-based optimisation, we realised 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."

In conjunction with its debut, Lattica has posted demonstration versions of its platform and shared the results of an in-depth survey conducted within the FHE community. According to these findings, 71% of participants believe FHE adoption will likely depend on a hybrid approach consisting of both hardware and software innovations.

Konstantin Lomashuk, Managing Partner at Cyber Fund, commented, "Lattica is pushing the boundaries of Fully Homomorphic Encryption, solving one of the most critical challenges in AI security. Cyber Fund is proud to have led Lattica's pre-seed round. This is the kind of deep-tech innovation that defines the future, and we're excited to see Lattica leading the way."

The healthcare and finance industries are specific targets for Lattica, given the demand for secure, cloud-based AI applications that can process medical and financial data without exposing such information to providers or third-party platforms. The company sees use cases in encrypted financial transactions and secure data analysis for medical research.

Sandeep Nailwal, co-founder of Polygon Network and investor in Lattica, said, "Lattica's product-first approach fundamentally transforms sensitive data processing in the AI ecosystem. Lattica has made FHE a reality that is both practical and scalable, as Tsabary and her research team is proving that advances in the machine learning stack can significantly boost the performance of FHE and have an immediate impact on the market."