Alcatraz raises $50 million to replace badges with facial authentication

CUPERTINO, Calif.—Alcatraz, a developer of facial authentication technology for physical access control, has raised $50 million in Series B funding as it looks to expand adoption across data centers, airports and other high-security environments.

The round was led by BlackPeak Capital, Cogito Capital and Taiwania Capital, with participation from existing investors including Almaz Capital, the European Bank for Reconstruction and Development (EBRD), Ray Stata and others. The funding brings Alcatraz’s total capital raised to more than $100 million.

Founded in 2016, Alcatraz develops an AI-enabled access control system designed to authenticate employees without storing facial images or other personally identifiable data. The company positions its technology as an alternative to badges, PINs and traditional biometric systems, which it says are increasingly vulnerable to loss, sharing and misuse.

Alcatraz reports that its customer base includes large data centers, U.S. airports, energy companies, professional sports organizations, universities and Fortune 100 enterprises. In 2025, the company says it saw more than 300% year-over-year growth in data center deployments and doubled new enterprise customer adoption.

“Badges and passcodes were designed for a different era,” says CEO Tina D’Agostin. “Organizations want stronger assurance that the person entering a secure space is the authorized employee - without introducing new privacy risks.”

Authentication vs. surveillance

At the center of Alcatraz’s platform is the Rock, a device installed at building entry points that verifies identity through facial authentication as a person walks past, eliminating the need to stop and present a credential.

The company draws a clear distinction between facial authentication and facial recognition systems commonly associated with surveillance. Traditional facial recognition technologies typically match images against stored databases of photographs, a practice that has drawn increased scrutiny from regulators and privacy advocates.

Alcatraz says its system does not store photographs, does not maintain a facial image database, and allows employees to opt in and delete their data. According to the company, the platform is designed to support compliance with regulations such as the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA)  and Illinois’ Biometric Information Privacy Act (BIPA).

“We’re focused on authentication, not identification or tracking,” D’Agostin says. “The goal is to confirm that the person accessing a space is authorized, without collecting or retaining personal data.”

Founder roots and early use cases

Alcatraz was founded by Vince Gaydarzhiev, who previously led hardware prototyping for iPads and iPhones at Apple during the development of Face ID. Gaydarzhiev says the experience shaped his view that biometric technologies could be deployed in physical environments with privacy built in from the outset.

“Consumer devices showed that biometric authentication doesn’t have to rely on centralized databases of images,” Gaydarzhiev said. “We wanted to apply those principles to the places where people work.”

One of the company’s fastest-growing markets has been AI-focused data centers, where physical access controls have become more critical as facilities house increasingly valuable computing infrastructure. Alcatraz says it has seen rising demand from operators seeking stronger access assurance alongside regulatory compliance.

“The infrastructure powering AI is drawing new attention to physical security,” Gaydarzhiev said. “Access control is part of that foundation.”

Expanding into airports and new markets

Beyond data centers, Alcatraz is also targeting transportation and other critical infrastructure sectors. Earlier this year, the Rock received certification from Safe Skies, an FAA-funded nonprofit focused on aviation security, for use in high-security airport environments.

The company says the new funding will support expansion into additional verticals, international markets and team growth. Alcatraz expects 2026 to be its strongest year to date as organizations reassess physical access control in response to evolving security and privacy expectations.