As the internet evolves into a space where AI agents act on our behalf and data becomes the new fuel for autonomy, one question grows louder: who controls our digital selves?
Today, we’re thrilled to announce our newest accelerator program in partnership with the Midnight Foundation, focused on advancing privacy-enhancing decentralized technologies in key sectors like identity and finance.
This program reflects a broader shift in the internet’s architecture — what we call The Post Web. It’s an internet built not for platforms, but for people. One where autonomy, privacy, and user agency aren’t just features – they’re defaults. This next phase of the internet demands a fundamental rethinking of how we handle identity, reputation, and personal data. At the center of that shift is privacy.
By supporting teams that embed privacy into the fabric of their products, we’re helping lay the foundation for this new era. That’s why we’re focusing on Privacy Enhancing Technologies (PETs) in our Post Web accelerator, designed to turn this vision into real-world products.
As the Web3 stack matures, privacy is moving from being a foundational infrastructure layer to a critical product layer. The focus is shifting from building core technologies like TEEs and zero-knowledge proofs to enabling founders to turn them into novel, trusted user experiences. Designed to fast-track innovation, the program will provide seed funding, expert mentorship, and regulatory support for founders tackling on-chain privacy.
Inside the PETs Accelerator: What Founders Need to Know
This new program is tailored for teams that blend decentralized architectures with permissioned data flows, leveraging PETs like ZK and TEEs to unlock selective disclosure, compliance-aware features, and user trust. Powered by a deep collaboration between Outlier Ventures and Midnight, our aim is to equip privacy-focused startups with the capital, technical expertise, and go-to-market firepower needed to scale rapidly.
This accelerator is specifically designed to help founders build confidence in a space where the technical complexity of PETs and the lack of standards often act as barriers to entry. By providing technical depth and real-world validation, the program aims to unlock new categories of applications that can meet the privacy and compliance demands of users, institutions, and regulators alike.
Founders accepted into the PETs accelerator track will receive:
- $200k in initial seed investment, plus eligibility for additional developer grant support
- Technical mentorship from Midnight’s core engineers, zero-knowledge cryptographers, and Outlier Ventures’ in-house team covering token design, GTM, technical aspects, and product development
- Comprehensive compliance guidance covering global data regulations such as GDPR, HIPAA, and CCPA/CPRA
- Go-to-market support via joint marketing campaigns, Demo Day exposure, and introductions to leading VCs in privacy and blockchain
During this 12-week program, founders will also receive guidance on how to build privacy-respecting applications that align with global data regulations. This is a critical factor as Web3 technologies enter regulated markets and mainstream adoption.
Understanding Privacy-Enhancing Technologies (PETs)
PETs are a class of advanced cryptographic, statistical, and computational techniques that enable data to be shared, processed, or analyzed without exposing sensitive information. Recognized by organizations like Gartner and the UK Information Commissioner’s Office (ICO), PETs are considered critical for building digital trust, enabling innovation, and ensuring compliance with privacy regulations such as GDPR and CCPA.
This new track will specifically support teams building directly on Midnight, a new privacy-enhancing blockchain network that uses zero-knowledge cryptography and programmable smart contracts to enable private, censorship-resistant, and regulation-ready decentralized applications.
Who Should Apply: PETs Use Cases We’re Backing
The PETs track is looking for ambitious teams building with privacy at the core. We are particularly interested in projects across the following verticals:
Identity
Founders working on decentralized identity, credentials, or selective disclosure applications. We seek projects embedding identity into apps, allowing users to carry private yet verifiable information and reputation across ecosystems. This includes privacy-enhanced login systems, on-chain credentials, or dedicated identity wallets.
Examples
- Selective Disclosure Wallet: Issue and manage credentials users can reveal piece by piece.
- Private Sign-In SDK: Plug-and-play zkLogin for apps to offer private, verifiable authentication.
- Pseudonymous Reputation Layer: Build up trust scores without linking to real-world identities.
Infrastructure
Projects building core infrastructure to support the next generation of privacy-first Web3 or enterprise applications. We are especially interested in decentralized exchanges, cross-chain bridges, or data oracles focusing on secure and compliant data exchange.
Examples
- ZK Contract Dev Kit: Tooling to simplify building, testing, and deploying private smart contracts.
- Encrypted Off-Chain Messaging: Middleware for secure dApp-to-user and contract-to-user communication.
- Compliant Access Control: Permission layer for smart contracts with privacy and auditability baked in.
Open Finance
Startups at the intersection of finance and privacy. Whether building consumer-facing fintech dApps, privacy-enabled payments, tokenized assets, or private credit and lending protocols, we want to support you. There is growing demand for consumer-grade dApps that prioritize user confidentiality without compromising performance as stablecoins and on-chain financial instruments scale globally.
Examples
- Private Payroll Tool: Simple system for DAOs and startups to pay contributors without exposing income.
- Privacy-Preserving Microloans: Lending dApp for small loans using private identity and credit data.
- ZK Stablecoin Wallet: A wallet with private balances and transaction history, built for everyday use.
Privacy Middleware
Teams building middleware solutions that bridge Web3, Web2, and enterprise systems. This includes cross-chain tooling, consent-based data access, or selective disclosure layers enabling interoperability and data protection without base layer trade-offs. Our goal is to help unlock universal privacy tools applicable across verticals.
Examples
- zkAPI Wrapper: SDK to call real-world APIs and return zero-knowledge proofs on-chain.
- Consent Gateway: API that enforces user-approved rules before dApps access private data.
- Privacy Sandbox for Devs: Local dev tool to simulate privacy-preserving logic with Midnight’s primitives.
Why We’re Partnering with Midnight to Power Privacy Innovation
Through this strategic collaboration, Outlier Ventures and the Midnight Foundation are combining resources including capital, technical expertise, and guidance on developing decentralized solutions that align with global regulatory frameworks such as GDPR — a critical factor in enabling institutional adoption of decentralized infrastructure in regulated markets.
This track joins Outlier Ventures’ broader accelerator platform, which already includes dedicated programs in DeFi, AI, DePIN, and real-world assets (RWAs). It reflects our ongoing mission to support the infrastructure and applications shaping the next evolution of the open web.
“Privacy is no longer a nice-to-have, it’s the foundation for real-world adoption. With Midnight’s cutting-edge advancements in confidential smart contracts, we’re giving founders a launchpad to build privacy-first apps that meet both user expectations and regulatory demands,” noted Syed.
Ready to Build with Privacy? Apply Now.
Applications for the Privacy Enhancing Technologies track are now open. Selected teams will join the 12-week accelerator starting in July.
About Midnight Foundation
The Midnight Foundation is an organisation dedicated to advancing the development, adoption, and real-world impact of the Midnight network, the privacy enhancing blockchain project developed by Shielded Technologies. Designed for confidential smart contracts, Midnight enables censorship-resistant yet compliant decentralised applications. It leverages zero-knowledge proofs and a cooperative tokenomics architecture – with NIGHT as the utility token and DUST as the shielded capacity resource – to deliver a powerful combination of privacy, security, and decentralization.
Learn more at https://midnight.foundation
