Zylon Company Profile

Background

Overview

Zylon is a Madrid-based company specializing in providing secure, on-premise AI solutions tailored for regulated industries. Founded in 2023 by Iván Martínez Toro and Daniel Gallego Vico, the company emerged from their prior work on PrivateGPT, an open-source project aimed at enabling private, context-aware Generative AI applications.

Mission and Vision

Zylon's mission is to empower organizations, particularly small and medium-sized businesses (SMBs), to harness the capabilities of Generative AI without compromising data privacy or requiring extensive technical expertise. The company's vision is to democratize access to advanced AI tools, enabling businesses to enhance productivity and innovation securely.

Primary Area of Focus

Zylon focuses on delivering private AI solutions that operate entirely within an organization's infrastructure, ensuring complete data sovereignty and compliance with regulatory standards. This approach is particularly beneficial for industries handling sensitive information, such as healthcare, finance, and legal sectors.

Industry Significance

In an era where data privacy and security are paramount, Zylon addresses a critical need by offering AI solutions that do not require data to leave the organization's premises. This positions Zylon as a significant player in the AI industry, catering to businesses seeking secure and compliant AI deployments.

Key Strategic Focus

Core Objectives

Data Privacy and Security: Ensure that all AI operations are conducted within the organization's infrastructure, maintaining strict data privacy and compliance with industry regulations.

User Accessibility: Develop user-friendly interfaces that allow non-technical users to leverage AI capabilities effectively.

Scalability and Flexibility: Provide solutions that can scale with the organization's growth and adapt to various industry needs.

Specific Areas of Specialization

On-Premise AI Deployments: Implement AI solutions that run entirely within the client's infrastructure, ensuring data does not leave the premises.

Generative AI Applications: Develop AI tools capable of generating content, analyzing data, and providing insights tailored to the organization's requirements.

Key Technologies Utilized

Open-Source AI Models: Utilize models like Meta's Llama 2 and Mistral's Mixtral to build customizable AI solutions.

Modular, API-Powered Infrastructure: Employ a flexible architecture that allows for extensive customization and integration with existing systems.

Primary Markets or Conditions Targeted

Zylon primarily targets SMBs across various sectors, including healthcare, finance, and legal industries, that require secure and compliant AI solutions without the need for in-house technical expertise.

Financials and Funding

Funding History

In February 2024, Zylon secured a $3.2 million pre-seed funding round.

Notable Investors

Felicis Ventures: Led the pre-seed funding round.

LifeX Ventures: Participated in the funding round.

Zypsy: Participated in the funding round.

Strategic Angel Investors: Travis McPeak, Kirill Tashilov, and Hans-Christian Zappel.

Intended Utilization of Capital

The funds are allocated for team expansion and the enhancement of Zylon's Software as a Service (SaaS) product, aiming to cater to entrepreneurs and SMBs lacking AI technical teams.

Pipeline Development

As a relatively new entrant in the AI industry, Zylon is in the early stages of developing its product pipeline. The company is focused on refining its AI solutions to meet the specific needs of regulated industries, with plans to expand its offerings as it grows.

Technological Platform and Innovation

Proprietary Technologies

Private AI Platform: An on-premise AI solution that ensures data privacy and compliance with regulatory standards.

Significant Scientific Methods

Open-Source AI Models: Leveraging models like Meta's Llama 2 and Mistral's Mixtral to build customizable AI solutions.

Modular, API-Powered Infrastructure: Employing a flexible architecture that allows for extensive customization and integration with existing systems.

Leadership Team

Iván Martínez Toro – CEO

Iván brings extensive experience in applying AI and machine learning to enhance software-as-a-service (SaaS) process optimization. Prior to founding Zylon, he served as CTO of Ontruck, where he honed his skills in AI integration and operational efficiency.

Daniel Gallego Vico – CTO

Daniel has a strong background in software development, with significant contributions at Amazon. His expertise in building scalable and secure AI systems is instrumental in Zylon's technological advancements.

Market Overview and Competitor Analysis

The enterprise AI market is experiencing rapid growth, with a projected compound annual growth rate (CAGR) of 18.9%, reaching $229.3 billion by 2030. This expansion presents significant opportunities for companies like Zylon that offer secure and compliant AI solutions.

Competitors

OpenAI: Offers advanced AI models but primarily operates on a cloud-based infrastructure, which may raise data privacy concerns for regulated industries.

Google Gemini: Provides AI solutions with a focus on integration across Google's ecosystem, potentially lacking the specialized focus on data privacy that Zylon offers.

Strategic Collaborations and Partnerships

In May 2025, Zylon announced a partnership with Telefónica Tech to deliver secure, on-premise AI solutions to regulated enterprises across Europe and Latin America.

Operational Insights

Zylon's focus on on-premise AI deployments addresses the growing concern over data privacy and security, setting it apart from competitors that rely on cloud-based solutions. This approach is particularly appealing to businesses in regulated industries that require strict data control.

Strategic Opportunities and Future Directions

Zylon is well-positioned to capitalize on the increasing demand for secure AI solutions by expanding its product offerings and forming strategic partnerships. The company's commitment to data privacy and user accessibility aligns with the evolving needs of businesses seeking compliant AI deployments.