Leeds Chip Startup Optalysys Raises £23M to Take Photonic FHE to the US
Optalysys raised £23 million in January 2026 to accelerate US expansion and scale its photonic computing platform for Fully Homomorphic Encryption (FHE). The Series A extension was led by Northern GritstoneDealroom has a profile for this one. Try Dealroom →, with notable participation from the UK's National Security Strategic Investment Fund (NSSIF)—a clear signal that photonic FHE acceleration is now classified as critical national infrastructure.
The Leeds-based company has moved decisively from R&D to commercialization. Its LightLocker Node, launched in June 2025, is the world's first enterprise-grade server for confidential blockchain transactions, processing over 100 encrypted operations per second with 40% lower power consumption than GPU alternatives. Early commercial traction and strategic partnerships with Google (HEIR compiler), Zama, and Duality Technologiesvalidate the market need.
The timing is strategic: post-quantum cryptography standards were finalized in 2024, creating a narrow window for enterprises to adopt quantum-resistant infrastructure. Optalysys's silicon photonics approach—using light instead of electricity for computation—overcomes the speed bottleneck that has historically prevented FHE adoption at scale.
With former Arm CTO Dipesh PatelDealroom has a profile for this one. Try Dealroom →as Chairman and over £44 million total raised, Optalysys is positioning to capture the emerging FHE acceleration market as it scales into hyperscaler partnerships.
Sources: The Tech Founders
UK Tech News
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