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Published in Science and Technology on Tuesday, September 9th 2025 at 8:32 GMT by reuters.com
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Altai Capital Lays Groundwork for Board Battle at Quantum‑Safe Cybersecurity Startup Orasure Technologies

September 9, 2025 – Reuters
In a quietly‑executed maneuver that could reshape the future of a nascent quantum‑resistant cybersecurity firm, Altai Capital has begun building a strategy to wrest control of Orasure Technologies’ board. Sources familiar with the matter told Reuters that the San Francisco‑based investment firm is assembling a team of legal and corporate governance experts and is preparing the necessary filings to trigger a board vote that could remove key directors and install Altai‑aligned officers.

The Players

Altai Capital – a boutique venture‑capital firm that focuses on early‑stage technology and cybersecurity ventures, Altai is known for taking an active role on the boards of its portfolio companies. The firm’s flagship investment vehicle, Altai Growth Partners, was launched in 2017 and has backed companies ranging from fintech startups to AI‑driven health tech. According to Altai’s own website, the firm’s mission is “to accelerate growth and create lasting impact by partnering with visionary founders.”

Orasure Technologies – founded in 2021 by a team of cryptographers and former defense‑industry engineers, Orasure has carved out a niche in quantum‑safe encryption. The company’s flagship product, the Orasure Quantum‑Secure Platform (OQSP), is a blockchain‑based solution that offers “public‑key infrastructure without the need for quantum computers.” The platform is already being piloted by a handful of government agencies and Fortune 500 firms. Orasure’s last funding round, closed in late 2024, raised $45 million and valued the company at roughly $300 million. The board currently consists of the founder and CEO, Alexei Sidorov, and a mix of early‑stage investors, including two venture funds and a strategic corporate investor.

Why the Tension?

The primary catalyst appears to be a disagreement over Orasure’s growth strategy and governance structure. A source close to the company said that while Orasure’s founders are passionate about technology, they have been hesitant to bring in external oversight that could accelerate commercialization. Conversely, Altai, which has a track record of guiding companies toward a public listing or strategic sale, believes that a more formal board structure is essential to unlock the company’s valuation and secure larger institutional investors.

“We’re not just looking to install a seat on the board,” said a former Altai executive who wished to remain anonymous for fear of retaliation. “We want to influence the strategic direction of the company in a way that aligns with our portfolio’s growth thesis.” That thesis, according to Altai, hinges on scaling Orasure’s platform to serve the U.S. Department of Defense and other high‑value government contracts, followed by an IPO or a sale to a major cybersecurity integrator.

Orasure’s co‑founder, who has served on the board since the company’s inception, has expressed concerns that external pressure could stifle innovation. “We built this company to be nimble,” he said. “A board fight could derail that momentum.”

The Mechanics of the Move

Altai’s legal team is reportedly preparing a comprehensive set of documents that will be filed with the California Secretary of State, as Orasure is incorporated in the state. The filings will request the removal of two independent directors and the appointment of three new members. Additionally, Altai is drafting a shareholder proxy statement that will be sent to the company’s limited group of shareholders, prompting them to vote on board changes.

Because Orasure has a relatively small shareholder base—most of its shares are held by founders, employees, and a handful of early investors—Altai’s strategy hinges on persuading these stakeholders to support the proposed board reshuffle. To that end, Altai is offering to match the company’s cash burn rate for a year in exchange for a board seat, thereby providing immediate liquidity to employees while gaining governance influence.

Potential Outcomes

Scenario One: Successful Board Reshuffle
If Altai secures the votes of the current shareholders, it could install a new board dominated by Altai‑aligned directors. This would give the firm the ability to steer Orasure toward a higher‑profile exit strategy, potentially a partnership with a major defense contractor or a go‑public event.

Scenario Two: Board Lock‑In and Legal Dispute
Should Orasure’s current board refuse to cede control, the dispute could devolve into a protracted legal battle. In the worst case, the company could file a motion for injunctive relief to prevent Altai from influencing corporate decisions, which would further complicate the company’s fundraising efforts and damage its market reputation.

Scenario Three: Negotiated Settlement
Given the reputational stakes for both parties, a negotiated settlement is plausible. Altai might agree to a “shadow board” arrangement—retaining advisory influence without formal board seats—while Orasure could adopt a more formal governance framework to satisfy external investors.

The Bigger Picture

Board battles are not new in the venture‑capital ecosystem, but the stakes are higher for a company like Orasure that sits at the intersection of emerging quantum technology and national security. The company’s technology could become a cornerstone of U.S. cybersecurity strategy, making its governance structure a matter of public interest. Moreover, the outcome of this dispute will send a clear signal to other cybersecurity firms about the balance between founder control and institutional oversight.

“We’re watching closely,” said a senior analyst at a leading investment research firm. “If Altai takes the helm, it could be a harbinger of how quantum‑tech companies will be steered into mainstream security ecosystems.”

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