Why We Invested in RiPSIM
Ten Eleven is obsessed with the innovations that secure rapidly growing technologies. In the case of our latest investment, RiPSIM, we are focused on an evolution in the security layer of wireless networks, which has seen a massive explosion in data traffic over the last few years thanks to the advent of 5G. A profound shift is occurring from analog to digital within the GSMA standard and specifically, the move from traditional SIM cards to eSIMs. This transition will change how mobile network authentication credentials are established and offer great flexibility and revenue opportunities to the companies who take advantage of it. Our investment in RIPSIM is a bet on this historic disruption in secure mobile communications and overall industry growth.
eSIM technology, unlike legacy SIM cards, can give carriers and other innovators a faster and more convenient way to include the security layer needed to authenticate and access wireless networks. This also means opportunities to create new products and services. RiPSIM’s eSIM-as-a-Service management platform is differentiated from other market offerings, enabling service providers to design, generate, and provision eSIMs on demand. Carriers can seamlessly create custom profiles and scale eSIM generation when needed, giving them complete control over managing needed credentials, in quantities that fit their exact requirements. It’s a more modern, just-in-time approach that, like other physical to digital transitions, will help companies grow their businesses and product lines in new ways.
As an investor, we believe RiPSIM will find success on multiple fronts:
- Benefiting from the replacement cycle to eSIMs from SIM cards. The large-scale transition to eSIM over the next 3-5 years presents a compelling opportunity for the company, as it captures market share from traditional SIM providers and supplies traditional carriers with a route to “eSIM autonomy.”
- Benefiting from the tailwinds of wireless communications and 5G growth. Global 5G connections surged to nearly 2 billion in Q1 2024 and are forecasted to reach around 58% of all mobile subscriptions by 2029. Underneath this explosive growth, we are seeing a profound rearchitecting of wireless communications. In particular, 5G will offer new alternatives to Wi-Fi and Bluetooth technology. As this growth continues, the convergence of 5G and eSIM technology will open new opportunities for enterprises to offer new kinds of services. In this evolving landscape, eSIMs will play a vital role in reshaping the networks of the future.
- Enabling new revenue streams. The final accelerator for the company will be when carriers and other innovators begin to use RiPSIM’s unique production capabilities to open new revenue streams including new wireless access and communication technologies for events, travel, IoT devices, and other industrial applications, often in combination with 5G.
Looking beyond the multiple growth opportunities we see for RiPSIM, we also see tremendous strength in its leadership. CEO Chris Jahr and Executive Chairman Scott Marquardt bring invaluable experience from their executive roles at G+D Mobile Security. Additionally, RiPSIM’s strategic position as one of the few U.S.-based providers accredited by the GSMA gives it a competitive edge, as carriers seek domestic suppliers to meet certain compliance and sovereignty requirements. Combined, RiPSIM is uniquely equipped to exploit the weaknesses of incumbents and drive innovation in the eSIM space.
To build on RiPSIM’s strong foundation, Malte Pollman, a member of the Ten Eleven Advisory Board and former CEO of Utimaco—a global leader in cybersecurity solutions—will be joining the RiPSIM board. Pollman, who worked alongside Ten Eleven during the diligence process, will bring valuable European insights to the business, enhancing RiPSIM’s ability to understand and anticipate market trends and carrier offerings abroad and in the U.S. Alongside Malte, I will also be joining RiPSIM’s board, where I hope to share my insights and experience scaling global technology businesses to help guide RiPSIM through its next phase of growth and innovation. Our investment in RiPSIM encapsulates our commitment to advancing security within multiple dimensions of the evolving technology landscape. While we have invested in many other companies that secure devices and IoT, we are excited to explore this new dimension of wireless network security. We are proud to support RiPSIM as it pioneers a new era of device authentication and opens new business models and product lines for carriers. For us at Ten Eleven, this is yet another story of better security leading to technological – and economic – growth. We are eager to witness the exciting journey that lies ahead for RiPSIM.