ALBUQUERQUE, NM (May 19, 2022) – Chiplytics, a hardware security company building inspection technology that provides insights into the microelectronics supply chain, today announced its official launch from the incubator of Scout Ventures, a venture capital firm that cultivates frontier and dual-use technologies built by hard-to-access founders. Chiplytics was Co-founded by Stephen DiBartolomeo, an Associate at Scout and veteran of the United States Navy, who served as a Cryptologic Warfare Officer at the National Security Agency. His Co-founders, Steven Dourmashkin and Matthew Skeels, are engineers from Cornell University working on their second startup together. This launch makes Chiplytics the sixth company incubated out of Scout's offices. Unite Us, the unicorn health services company, was the first company incubated out of Scout's New York office in 2014.
Chiplytics' proprietary technology, the Chiplytics One, screens every chip going into critical systems to fight counterfeiting, ensuring safety and compliance of semiconductors worldwide, which allows commerce and exchange to function securely around the globe. It's also the first inspection platform that combines electrical and optical testing to build data sets to detect small differences to identify clones, counterfeits or damaged chips. The company plans to leverage these data sets and their proprietary software to help companies source and test chips before they get put into high-reliability systems, saving them from costly recalls and building trust within the public and private sectors.
Counterfeit semiconductors pose an estimated $200 billion risk per year to the global electronics supply chain, and the current global chip shortage makes this risk even greater. Recent estimates from the International Anti-Counterfeit Coalition suggest a 57% increase in the global counterfeit market since the pandemic began, with microelectronics being one of the sectors on the rise. Chiplytics aims to mitigate this danger through non-invasive assessment, detecting anomalies using machine learning that will keep companies ahead of the evolving counterfeit chip market.
“Working with Scout Ventures to launch Chiplytics has allowed my co-founders and I to execute on our shared vision for a robust and trusted microelectronics supply chain, utilizing the resources and intellectual heft of our nation's top scientists to commercialize technology that will have an immediate impact on national security and global collaboration,” noted founder Stephen DiBartolomeo. “At present, the global chip shortage and lack of compliance in the industry at large poses a massive risk for companies and governments worldwide. Our mission is to protect critical infrastructure, military equipment, automobiles, and other high-reliability systems from counterfeit or unauthentic chips, where failure could result in serious damage or casualties.”
DiBartolomeo built and launched Chiplytics through a collaboration with the National Nuclear Security Administration and Sandia National Labs, where the technology was originally invented. Scout Ventures incubated Chiplytics through a $300k Seed round, with an additional $50k of non-dilutive funding sourced through Sandia and the US Army. Scout guided Chiplytics' development after the foundational technology was sourced through Sandia National Labs, a common framework of growth for companies developed within Scout's incubation program. Scout Partner Sam Ellis, another veteran with experience working within National Labs, serves on the board and spearheads Scout's tech incubator.
“We take a hands-on approach to building companies in our incubation program, specifically in the first six months after an institutional seed raise. Our incubator helps entrepreneurs think about fundraising in the right way so they can focus on building their team and execute their vision in order to grow toward larger rounds in the biggest possible space,” explained Ellis.
So far, Scout Ventures has incubated two companies in Fund III, including Paar.ai, led by Israeli Defense Force veteran Bentzi Rubin. Companies developed in the incubator usually receive a mix of Scout funding and non-dilutive capital, with foundational technology being sourced from National Labs. The development of Chiplytics represents a model for Scout's future incubation efforts, as the company's technology will have global reach and multifaceted goals that include saving companies and governments money, supporting technology commercialization, and promoting safety and security around the globe through innovation grounded in large data sets.
Chiplytics is a hardware security company building semiconductor inspection technology to gain deeper insights into the microelectronics supply chain. Chiplytics' non-invasive, automated approach is the first inspection platform that combines electrical and optical testing to enable comprehensive, data-driven quality assurance, helping keep companies and governments ahead of the evolving counterfeit semiconductor market.
Scout Ventures is an early-stage venture capital firm that is making the world a better, safer place by cultivating standout frontier technologies built by hard-to-access founders. Scout's team consists of investment professionals and entrepreneurs with deep domain experience building multiple billion dollar software companies. ​​Scout focuses on the sectors where the team's experience helps companies grow: Frontier Technologies (AI & Data Science, Robotics, Drones, Autonomous Mobility, AR/VR, Advanced Materials, Physical and Cybersecurity, Quantum Computing, Space) and Enterprise SaaS.
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