Seed Funding Enables GridCOM to Advance Cyber Security Technology

Cyber Security, Cyber War

quantum encryption to market, Earl says he left a cyberwarfare group at Oak Ridge to found GridCOM Technologies, a startup near San Diego commercializing the technology.

GridCOM says it recently secured seed funding from Bakersfield, CA-based Ellis Energy Investments, and is looking to raise Series A funding from venture investors. Earl would not disclose how much funding GridCOM received, citing a contractual agreement with Ellis. But he says the seed funding is enough to pay for prototype development and demonstration tests at the six-employee startup over the next year.

GridCOM’s approach to quantum encryption technology uses a laser to generate photon “twins” that are “entangled,” a term that describes how the twin photons are correlated with identical-but-opposite polarizations. A computer server uses the correlated photons to produce a random encryption key to authenticate and encrypt power grid data and commands.

Earl says the correlated photons behave in accordance with the unique properties of quantum mechanics. Any attempt to intercept or read the authentication key would alter the photons’ physical signature, so the technology provides secure communications without any delay.

Quantum encryption has been under development for more than 20 years, and Earl says the technology is not ready for use in commercial telecommunications. But applying the technology for use in machine-to-machine communications “is not as researchy and is actually pretty easy,” Earl says.

GridCOM plans to offer its technology as a subscription-based service, initially targeting electric utilities. While San Diego Gas & Electric is a potential customer, Earl says GridCOM is working initially with the Northern California Power Agency. Earl says he envisions SDG&E will be a research partner as the company moves to field trials, perhaps as early as next year.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.