In a strong signal of investor confidence in next-generation infrastructure protection, Las Vegas–based cybersecurity hardware company Magneto Secure announced on October 4, 2025, that it has raised $25 million in Series A funding, one of the largest cybersecurity-focused hardware rounds in the Mountain West region this year. The funding round was co-led by Mountain West Ventures and Sierra Peak Capital, with participation from several strategic investors specializing in critical infrastructure and industrial technology.
The financing marks a major milestone for Magneto Secure, which designs tamper-resistant, hardware-level security modules to safeguard sensitive infrastructure systems—from national power grids and energy networks to telecommunications and financial data centers. Unlike conventional software-based defenses, Magneto Secure’s technology embeds protection directly into physical components, providing a secure foundation that helps prevent both digital and physical breaches.
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Company executives said the new funding will be used to expand manufacturing capacity, pursue federal and industry certifications, and deploy its first pilot systems across the Western United States. Certification efforts will include Federal Information Processing Standards (FIPS) and Common Criteria validation—both of which are considered essential benchmarks for devices operating within high-security environments such as government facilities and critical utilities.
CEO and co-founder Ryan Caldwell described the Series A raise as a “validation of the growing recognition that cybersecurity must extend beyond software firewalls to the physical layer of technology.” In a statement, Caldwell noted, “The reality is that many of today’s most serious infrastructure threats occur at the hardware level—through physical tampering, component manipulation, or firmware exploitation. Magneto Secure was built to defend systems from the ground up, starting at the silicon.”
The company’s forthcoming expansion includes the establishment of a new hardware development and testing center in Reno, Nevada, which is expected to create up to 60 engineering and technical jobs over the next 18 months. Nevada’s Governor’s Office of Economic Development (GOED) and the Reno Technology Corridor Initiative have both endorsed the project, offering tax incentives and expedited permitting to help accelerate the facility’s construction. State officials view Magneto Secure’s investment as a cornerstone in Nevada’s emerging cybersecurity and advanced electronics ecosystem, which has grown steadily over the past five years.
Economic development officials say the project aligns with broader state efforts to diversify Nevada’s economy beyond gaming and tourism. “We’re building a robust innovation corridor connecting Reno and Las Vegas, with cybersecurity and advanced manufacturing at the heart of it,” said GOED Director Melissa Vargas. “Companies like Magneto Secure represent the future of technology investment in the state—high-skill, high-impact, and mission-critical.”
The new capital will also support pilot deployments with regional utilities, financial networks, and data center operators, several of which are already partnering with Magneto Secure to test its proprietary hardware modules. These modules, described by company engineers as “digital vaults at the chip level,” combine secure microcontrollers with real-time intrusion detection, cryptographic key storage, and firmware integrity monitoring.
The market for such solutions is expanding rapidly as organizations seek stronger defenses against supply chain attacks, physical tampering, and firmware-level exploits—vulnerabilities that have grown more sophisticated in recent years. The 2021 Colonial Pipeline incident and subsequent breaches targeting industrial control systems underscored the need for deeper, hardware-based security infrastructure. In this context, Magneto Secure’s technology arrives at a pivotal moment, addressing threats that traditional cybersecurity software often overlooks.
Investors in the Series A round emphasized the growing strategic importance of securing the hardware layer. David Lurie, managing partner at Mountain West Ventures, called Magneto Secure’s approach “both overdue and essential.” He said, “Software can only go so far. True resilience in critical systems requires secure chips, secure firmware, and secure physical interfaces. Magneto Secure’s innovation fills that gap.” Sierra Peak Capital’s Sarah Tang, who will join Magneto Secure’s board of directors, added that the company’s modular design enables rapid integration into existing infrastructure, giving it strong near-term commercial potential.
Magneto Secure’s product roadmap includes a series of security modules designed for power grid substations, financial transaction gateways, and telecom base stations. The company expects to begin limited pilot production in mid-2026, with commercial shipments and revenue generation projected for late 2026. Longer-term plans include scaling up to support federal contracts and expanding its presence into international markets, particularly in Europe and East Asia, where hardware cybersecurity mandates are tightening.
The startup’s growth also reflects a broader shift in the cybersecurity landscape, where hardware-based trust mechanisms—including secure elements, trusted platform modules (TPMs), and embedded cryptographic processors—are becoming integral to modern security architecture. Industry analysts have noted that public and private investments in hardware-level security have surged since 2023, driven by both rising cyber-physical threats and regulatory changes requiring stronger compliance in defense and utilities sectors.
Magneto Secure, founded in 2022 by engineers from the semiconductor and defense industries, has positioned itself at the intersection of hardware engineering, cybersecurity, and industrial resilience. Its founders, who have backgrounds in embedded systems and critical infrastructure protection, have emphasized scalability and interoperability as core design principles. The startup aims to ensure that its hardware security modules can integrate seamlessly with existing control systems, reducing barriers to adoption for utilities and financial institutions.
With this new infusion of capital, Magneto Secure plans to accelerate hiring across engineering, quality assurance, and compliance divisions. Recruitment for the Reno facility is expected to begin by early 2026, with roles spanning electronics design, cybersecurity analytics, and advanced testing.
For Nevada, the expansion marks a significant win in its bid to attract high-tech startups and diversify its innovation economy. For the broader cybersecurity industry, it signals the growing investor appetite for physical-layer security solutions—a field that, until recently, received far less attention than cloud or network defenses.
As global threats to infrastructure continue to rise, Magneto Secure’s Series A funding underscores an emerging consensus: in the next phase of cybersecurity, the battle for security will be fought not only in code, but also in circuits.