How does Cape offer a more secure cellular network?

Cape operates as a mobile virtual network operator, building its own private and secure mobile core. They rotate identifiers like Apple rotates MAC addresses and deploy best-in-class cybersecurity practices, including building their own components when off-the-shelf options are lacking.

What are the Navy's priorities for technological transformation?

The Navy is focusing on adopting private sector innovation, improving software acquisition speed, and identifying new capabilities. Their strategy involves a 'barbell strategy' to address both high-end needs and more tradable commercial solutions, with an emphasis on internal education and training.

How can startups effectively partner with the Navy?

Startups should focus on understanding the Navy's problems and offering solutions with measurable outcomes. The Navy is increasingly receptive to innovation and has created programs like DIU to facilitate faster adoption. Defining clear success metrics (WHAMs) is crucial for alignment.

What are the main challenges in selling defense tech to the government?

Traditionally, the Navy was considered slow to adopt new technology. However, by demonstrating clear value, focusing on measurable results, and understanding the government's need to adapt, companies can find receptive partners. Internal government education and training are also key.

What opportunities exist for the private sector within the Navy?

Beyond secure communications, opportunities lie in advanced manufacturing (additive and distributed), parts repair, software modernization (reducing technical debt), and creating intuitive user interfaces that consolidate existing systems.

What advice do you have for entrepreneurs wanting to enter defense tech?

Aspiring founders should identify major pain points within the defense sector, learn from those experiencing them (e.g., by visiting docks or attending hackathons), and focus on solving significant problems rather than minor issues. Joining a reputable startup like Cape is also an option.

Key Moments

Privacy, Resilience, and Reinventing the Cellular Network | Cape CEO on a16z

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Science & Technology1 min read47 min video

Mar 26, 2026|72 views|6

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Key Moments

TL;DR

An estimated 5 out of 60 cyber experts knew about Salt Typhoon, a Chinese hacking group that has fully infiltrated major U.S. cellular carriers, giving them access to calls and call data records.

Key Insights

China's "Salt Typhoon" hacking group has infiltrated major U.S. telecommunications carriers, gaining access to lawful intercept plug-in points, enabling them to listen to phone calls and access call data records.

Cape, a new commercial cellular network, offers a more private, secure, and resilient alternative by rotating phone identifiers and building its own secure components, aiming to be "meaningfully better than any other carrier from a cybersecurity perspective."

The Navy is undergoing a technological transformation, shifting from internal development to adopting commercial innovations, exemplified by running bootcamps for program managers to accelerate procurement from 18 months to 3 months.

A pilot program in Guam involved deploying Cape's network

Mentioned in This Episode

●Companies

●Organizations

●People Referenced

Common Questions

Salt Typhoon is a Chinese government-backed hacking group that has infiltrated major US telecommunications carriers. They can access lawful intercept points, allowing them to listen to phone calls and collect call data records, posing a significant national security and privacy risk.

Topics

Technology & Innovation Business & Entrepreneurship Startup Growth Defense Technology Government Contracting Innovation Adoption Network Resilience

Mentioned in this video

Locations

China

Identified as the source of infiltration into major US telecommunications carriers, capable of compromising networks for surveillance purposes.

United States

The country where major telecommunications carriers have been infiltrated by China, posing significant national security and privacy risks.

Companies

Cape

A global cellular network company that offers a more private, secure, and resilient service by operating as a mobile virtual network operator and building its own secure infrastructure.

Palantir

The company where John Doyle worked for nine years, running the national security business, and where he learned about vulnerabilities in the commercial cellular network.

Apple

Mentioned as a company that rotates MAC addresses on iPhones, a privacy feature that Cape emulates for other phone identifiers.

Organizations

American Dynamism

The team that helped John Doyle start Cape in 2022.

PEO Digital

An office within the Navy that John Doyle had the opportunity to brief on Cape's technology.

Navy

The US Naval branch undergoing technological transformation, focusing on adopting private sector innovation and improving acquisition processes for software and new capabilities.

DARPA

Mentioned as an organization where Justin Finelli helped stand up new agencies, including one for healthcare.

The Department of Veterans Affairs, with whom Defense Health was working to connect health records during Justin Finelli's tenure.

DIU

The Defense Innovation Unit, which provided funding to help Cape's pilot program in Guam move faster and also paid for an unclassified tech evaluation report.

People

John Boyd

Mentioned for his 'OODA loop' concept and described as a 'warrior engineer', whose legacy is invoked by Justin Finelli.

JD Vance

His phone calls were reportedly listened to during the last presidential campaign, serving as an early indicator of Salt Typhoon's capabilities.

Z McGee

A Lieutenant Colonel in the Marine Corps who started an innovation challenge and is described as an amplifier and funnel for new ideas.

Justin Finelli

CTO of the Navy, who discusses the Navy's shift towards adopting private sector innovation, focusing on internal education, training, and a 'barbell strategy' for acquisition.

John Doyle

Founder and CEO of Cape, a former Green Beret and Palantir executive, who discusses the vulnerabilities in commercial cellular networks and Cape's approach to providing a secure alternative.

Steve Blank

An entrepreneurship figure channeled by Justin Finelli to advise aspiring founders to 'go to where the problems are'.

Products

Verizon

Mentioned as a counter-example to Cape's network, indicating it's a major US commercial carrier whose branding might appear on a user's phone.

Legislation & Policy

Kala

A requirement that obligates telecommunication companies to be responsive to lawful intercept requests from law enforcement.