A Cupertino-based startup, Alcatraz, which was established by a former Apple engineer involved in developing Face ID, has secured $50 million in Series B funding.
This funding round, led by BlackPeak Capital, Cogito Capital, and Taiwania Capital, raises Alcatraz's total investment to over $100 million. The company specialises in AI-driven physical access control systems that verify employees' identities without saving personal biometric data. Existing investors such as Almaz Capital, EBRD, and Ray Stata also participated in this funding round.
Growth in AI data centres
Alcatraz's technology is already utilised by some of the largest AI data centres globally, along with major U.S. airports, energy firms, NFL teams, notable universities, and numerous Fortune 100 corporations. The company has reported a substantial increase in the adoption of its services, citing a more than threefold growth in data centre applications in 2025, along with a significant rise in new enterprise clientele and Fortune 500 engagements.
Tina D'Agostin, CEO of Alcatraz, highlighted the system's innovation, stating, "We are the Face ID of securing physical spaces... Our technology is AI-powered and completely anonymised."
Addressing biometric security issues
Ray Stata, a major investor in the company, remarked on the growing need for advanced security systems
The traditional security mechanisms, such as badges and PINs, face challenges due to their antiquated design. Legacy biometric systems typically rely on surveillance that links an individual's identity to facial images, creating privacy and security vulnerabilities.
Ray Stata, a major investor in the company, remarked on the growing need for advanced security systems that focus on the person rather than traditional methods.
The Rock™ Solution
Alcatraz's unique approach to authentication, known as the Rock™, verifies identities through facial authentication without stopping or swiping badges, differing significantly from facial surveillance technologies. This system confirms identities without storing photographs or accessing personal data, aligning with global privacy standards such as GDPR and CCPA.
D'Agostin emphasised the distinctiveness of their technology: "We are the only biometric system protecting physical spaces using facial authentication instead of the legacy facial surveillance use case."
Innovative Origins and Regulatory Landscape
Founded in 2016 by Vince Gaydarzhiev, who previously worked on Apple's Face ID, Alcatraz aims to replicate the privacy-centric approach of smartphone security in physical spaces. Gaydarzhiev stated, "The idea was to bring that same approach to the physical spaces where people work." The recent funding will be used to expand product development and global market reach.
The AI data centre boom has prompted increased physical security investments as these sensitive infrastructures grow more valuable. Earlier this year, the FAA-funded Safe Skies certified Alcatraz's Rock™ as suitable for high-security airport environments, marking a pivotal opportunity for the company.
Future Expansion Plans
Vince Gaydarzhiev noted the significance of the facilities they protect: "The data centers we protect aren't just buildings. They are the infrastructure that the entire digital economy runs on." With the latest investment, Alcatraz plans further technological advancements and global market expansion, with expectations for a strong 2026 performance.
A Cupertino startup founded by a former Apple engineer who helped develop Face ID has spent a decade building the alternative — and today announced it has raised $50 million to bring it to the world.
Alcatraz, which makes an AI-powered physical access control system that authenticates employees without retaining any personal biometric data, has closed a $50 million Series B funding round, bringing total capital raised to more than $100 million. The round was led by BlackPeak Capital, Cogito Capital, and Taiwania Capital, with participation from existing investors Almaz Capital, EBRD, Ray Stata, and others.
AI data centres
The company's customers already include the world's largest AI data centres, major U.S. airports, energy companies, NFL teams, major universities, and Fortune 100 companies. In 2025, Alcatraz reported more than 300% year-over-year growth in data center adoption, 200% growth in new enterprise customers, and a fivefold expansion across Fortune 500 deployments.
"We are the Face ID of securing physical spaces," says Tina D'Agostin, CEO of Alcatraz. "The world's largest airports, energy companies, and the world's most critical data centers all trust Alcatraz. Our technology is AI-powered and completely anonymized. For the workplace of today, badges and passcodes inherently invite too much risk."
Major biometric security system
The Problem: Legacy Security Was Built for a Different Era - Badges get lost. PINs get shared. Legacy biometric systems often fail under real-world conditions. But the deeper problem, the one the physical security industry rarely talks about, is surveillance.
Every other major biometric security system currently on the market is built on facial biometric technology rooted in surveillance that ties an employee's personal identity to their face, stores that data, and creates exactly the kind of high-value target that attracts breaches. Employees often don't know it's happening. Regulators are beginning to take notice.
"Four-digit passcodes and badges were designed for a different era," says Ray Stata, one of the company's largest investors. "Companies are realizing they need security that is tied to the person, not to a piece of plastic. With Alcatraz, every time an employee walks through the door, our AI-powered technology is learning and adapting — not relying on a photograph taken years ago on their first day."
Stored database of photographs
The Solution: Authentication, Not Surveillance - Alcatraz's answer is the Rock™ — a solution installed at building entry points that verifies identity through facial authentication as a person walks past at normal speed. No stopping. No swiping. No badge to fumble for.
The distinction is fundamental. Facial surveillance identifies people by matching images against a stored database of photographs — the same technology that has drawn scrutiny from regulators, civil liberties groups, and lawmakers. Facial authentication, the approach Alcatraz uses, simply confirms that the person walking in is who they say they are - without storing any photos or accessing any other personal data. Think of the difference this way: facial recognition is a surveillance camera with a long memory. Facial authentication is a lock that recognizes your key — and forgets it the moment the door opens.
Protecting physical spaces
No photographs are taken. No biometric images are stored in the cloud. Employees enroll voluntarily and can delete their data at any time. The platform is designed to meet GDPR, CCPA, BIPA, and other compliance requirements out of the box.
"We are the only biometric system protecting physical spaces using facial authentication instead of the legacy facial surveillance use case," says D'Agostin. "Like Face ID on your iPhone, no photographs are being taken. No personal data is being stored."
Physical security industry
The Founder: From Apple to the Buildings That Run the World - Alcatraz was founded in 2016 by Vince Gaydarzhiev, who led hardware prototyping for iPad and iPhone at Apple during the development of Face ID. He saw firsthand what the technology could do when privacy was built in from the start — and saw an obvious question nobody in the physical security industry was asking: why couldn't the buildings where people work be protected the same way their phones already were?
"I saw firsthand how powerful this technology could be when it was built with privacy at the centre," says Gaydarzhiev. "The idea was to bring that same approach to the physical spaces where people work. Now we protect the top AI data centers in the world. If AI is the engine powering the next era of innovation, security has to be the foundation beneath it. This funding accelerates our ability to build that foundation at global scale."
Mounting regulatory expectations
Why Now: The AI Data Center Boom Has Created a Physical Security Challenge - The timing of the raise is not coincidental. The largest technology companies in the world are spending hundreds of billions of dollars building data centers to power the artificial intelligence boom — and the facilities housing that infrastructure have become some of the most sensitive real estate on the planet. Physical security spending at data centers is projected to grow significantly in the coming years, driven by the value of equipment inside and mounting regulatory expectations around access.
Earlier this year, Safe Skies — funded by the FAA — certified the Rock™ as reliable, secure, and effective for use in high-security airport environments, a milestone that opens a significant new sector for the company.
High-security airport environments
"We are the guardians of AI," says Gaydarzhiev. "The data centers we protect aren't just buildings. They are the infrastructure that the entire digital economy runs on." Alcatraz plans to use the new capital to accelerate product development, expand into international markets, and grow its team. The company expects 2026 to be its strongest year to date.
