When we first told people that the lead investor for our recent $5 million seed round was a cybersecurity-focused VC firm, Ten Eleven Ventures, many were surprised. 
That surprise indicates fundamental misunderstandings about eSIMs, which provide digital identity authentication on mobile networks. But too often, ‘eSIM’ is equated with ‘mobile access while traveling and assumed to be something like a simple memory card.
In fact, the opposite is true. eSIMs, which are the digital version of physical SIM cards, employ sophisticated encryption technologies for establishing mobile network authentication credentials. Building and managing them requires deep domain expertise.
Clearly, Ten Eleven Ventures understands the importance of what we do and its potential to transform the mobile industry. As security-focused VCs, they’ve invested in numerous companies that provide potential synergy with RiPSIM, including Device Authority (issues certificates for IoT); Ordr (connected device security/healthcare IoT); and Eclypsium (digital supply chain security for critical software, firmware, and hardware in enterprise infrastructure).
To gain more insight into the thinking behind their investment in RiPSIM, I sat down with Alex Doll, founder and managing general partner of Ten Eleven Ventures.
Chris Jahr: Alex, let’s start with the big picture. Why did Ten Eleven Ventures invest in RiPSIM?
Alex Doll, Founder, Managing General Partner, Ten Eleven Ventures
Alex Doll: At the highest level, we’re big believers in the SIM to eSIM replacement cycle that’s already underway, and that RiPSIM is helping to push. That cycle is still in the early stages, but things like Apple’s decision in 2022 to make the iPhone 14 eSIM-only is helping to push the trend.
This eSIM transition reminds us of a lot of other markets where digital replaced physical. In the security world, the comparison that really resonates is with SSL, or digital certificates, which were developed to address the need to standardize secure communications over the internet.
Collectively, those of us at Ten Eleven Ventures have been investing in the theme of device authentication, and the use of certificates and digital services, for more than 20 years. Elements of those SSL and other authentication approaches look really similar to the eSIM market, which we recognize is at an inflection point.
For example, the eSIM market has a lot of characters, multiple layers that have to come together at the same time: carrier, mobile device, issuer, and the ecosystem that can be built on top. Apple provided the last piece of the puzzle, with the device. We see analogies between what RiPSIM is doing and what happened in these previous authentication areas.
Chris: We’re a little different than many startups because we’re offering a process change, not a product. We’re modernizing and transforming how you get eSIMs, but we’re not changing eSIMs themselves. How did this approach factor into your thinking?
Alex: That’s where the analogy with digital certificates is relevant. DigiCert didn’t create something new; they produced a standard certificate that browsers around the world widely propagated and that the signature would verify. It’s the digitization of the eSIM process that’s important with RiPSIM. That physical to digital replacement cycle is what will disrupt this market.
The bottom line is that eSIMs are inevitable. And what the RiPSIM platform does is enable carriers and network operators, big and small, for the first time, to create eSIMs as needed, quickly and in any quantity. So instead of the current model of inefficient outsourcing to a handful of SIM vendors based outside North America, carriers and network operators gain full custody and control over the entire mobile credentialing process. They can securely authenticate subscribers to their networks, easily and whenever they need it.
Chris: How would you define the market that RiPSIM competes in?
Alex: RiPSIM is creating a new space. Transforming eSIMs into an entirely digital, cloud-based process will enable new revenue streams and higher-retention streams for carriers and private mobile network operators first, then for any enterprise that needs authentication to a mobile network, like IoT and travel companies.
Chris: What are some examples of organizations or applications that the RiPSIM platform’s eSIMs-on-demand capability would make possible?
Alex: Anything that’s on Wi-Fi or Bluetooth today can be replaced by 5G. And that’s massive. If your Wi-Fi access points are working terribly, and your broadband provider is delivering terrible service, maybe they’ll be replaced by 5G access points and providers that do a better job. I think you’ll see the networking companies playing here, too. They do authentication and access control today for W-Fi and corporate networks. Why not do it for 5G, too?
It opens up new revenue streams for anyone who can get GSMA authentication to the 5G network. Which is what RiPSIM enables.
Or consider travel companies offering inexpensive roaming services, or corporations providing roaming for their employees who travel internationally. The availability of 5G and just-in-time eSIMs open the door for consumption-based services. These are capabilities that become possible when you digitize the eSIM process.
Chris: What do you see in terms of market adoption and timing?
Alex: Once network operators see how just-in-time issuance of eSIMs will benefit their revenue streams and create significant efficiencies, adoption will be swift.
Chris: What made you think that RiPSIM is positioned to take advantage of this future you envision?
Alex: RiPSIM is at the horizon of this new market space. The company’s core DNA is all about the digitization of mobile network authentication, the SIM to eSIM replacement cycle. They have incredibly deep expertise, and we believe that RiPSIM is the right company at the right time to fuel this transition. And of course, we’re excited to help make that happen.
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