Wodan AI, a European deep-tech startup, secured pre-seed funding of €2 million to speed up the development of its platform that aims to deliver AI models’ execution on data that is fully encrypted. The funding round was mainly supported by three Spanish venture capital firms—JME Ventures, Swanlaab, and Adara Ventures—and was complemented by a capital injection from the Brussels-based ScaleFund, reflecting growing investor interest in privacy-respecting and sovereign AI technologies in Europe.
Solving Enterprise AI’s Data Security Bottleneck
As one of the key factors limiting AI adoption in the enterprise sector, data security lies at the core of Wodan AI’s mission. The startup is developing a platform based on homomorphic encryption, a cryptographic technique that allows computations to be performed directly on encrypted data without decryption. This enables machine learning, computer vision and large language models (LLMs) to operate on highly sensitive datasets while keeping the information fully protected.
Unlocking AI for Highly Regulated Sectors
The solution is particularly relevant for finance, defence, healthcare, government and critical infrastructure, where regulatory constraints and security risks often restrict the use of advanced AI. By enabling analytics without exposing raw data, Wodan AI removes one of the biggest trade-offs between data protection and AI-driven insight.
Advances Make Encrypted AI Practical
Bob Dubois, CEO and co-founder of Wodan AI, said the new funding will support further technology development and strengthen the company’s position in Europe’s secure AI landscape. He highlighted that recent breakthroughs have transformed homomorphic encryption from a theoretical concept into a deployable enterprise technology.
“For a long time, homomorphic encryption was considered theoretically sound but practically too slow or complex,” Dubois said. “That is rapidly changing. Organisations can now apply AI to their most sensitive data without compromising security or regulatory compliance.”
Designed for Europe’s Privacy and Sovereignty Rules
Wodan AI’s platform is built to comply with Europe’s most stringent privacy and digital sovereignty frameworks, including GDPR and upcoming EU regulations on AI and data governance. As policymakers push for greater control over critical digital infrastructure, regulatory alignment is becoming a decisive factor for AI adoption across the continent.
Madrid as a Strategic European Hub
As part of its growth strategy, Wodan AI plans to relocate its global headquarters to Madrid, consolidating its research and development operations in Spain. The company will focus on advanced cryptography, machine learning and privacy-enhancing technologies, aligning with Spain’s ambition to become a centre for deep-tech and sovereign AI innovation.
Building a Secure AI Talent Base
Manuel Pérez Yllan, CTO and co-founder of Wodan AI, said Spain offers the technical expertise needed to build mission-critical AI infrastructure. “With our Madrid-based headquarters, R&D centre and team expansion, we want to create a European private, secure AI hub that can serve the most demanding sectors,” he said.
Early Validation in Financial Services
Wodan AI is already working on a pilot project with a Spanish financial institution, which it describes as an early validation of encrypted AI for real-world, high-security use cases. The pilot demonstrates how financial organisations can deploy AI on sensitive customer and transaction data without exposing it internally or externally.
Scaling Technology and Commercial Reach
Following the funding round, Wodan AI plans to expand its engineering team, accelerate its technical roadmap and extend its platform to support more advanced encrypted computer vision and LLM workloads. The company will also strengthen its commercial operations, targeting European organisations in strategic and highly regulated sectors.
Positioning at the Intersection of AI and Cryptography
As concerns around data privacy, cybersecurity and digital sovereignty continue to intensify, Wodan AI is positioning itself at the crossroads of cryptography and artificial intelligence. By enabling AI to run securely on encrypted data, the company aims to unlock adoption in environments where AI has so far remained constrained—supporting Europe’s push toward a safer, more compliant and sovereign AI future.