Pre-Seed · Confidential Investor Brief

DataStop

Hardware-Enforced Compliance + Improved WiFi at Peak Times

A network-edge appliance that enforces Oklahoma's new Consumer Data Privacy Act at the wire — with the added benefit of stable, high-performing guest WiFi during peak occupancy.

Stage
Pre-Seed
Status
Pre-Revenue
To OCDPA
156 days
Ask
$500K SAFE
01 — The Enforcement Gap

Consent logged is not consent enforced at the packet.

156days to OCDPA enforcement
January 1, 2027
  • 01
    Every state privacy law requires opt-in for sensitive data — precise geolocation, health, biometric. Oklahoma's OCDPA enforces January 2027.
  • 02
    WiFi controllers and compliance platforms live at the admin layer. They document and audit. They can't inspect packets or verify traffic stopped.
  • 03
    This is an architecture constraint, not a vendor failure. You can't enforce at a layer you were never in the path to see.
The open question: does “effective cessation of processing” mean a documented consent — or data flows that actually stop? The first enforcement action answers this. When it lands, WiFi vendors need hardware enforcement fast. DataStop is the only solution sitting in the data path.
01b — Evidence — Osano 2026 Playbook

Software begs. Hardware enforces. The fines prove it.

These are pulled directly from Osano's 2026 State of US Privacy Enforcement report — the playbook for how state regulators are now testing privacy controls at the wire, not just on paper.

$23M+
Privacy penalties in 16 months (ex-Google)
$2.07M
Average penalty size
~150
CCPA complaints per week to CPPA
Hundreds
Open CPPA investigations, mostly undisclosed
  • “The sixteen months between January 2025 and May 2026 produced more enforcement activity under comprehensive state privacy laws than the preceding five years combined.”
    — Osano, State of US Privacy Enforcement 2026
  • “The privacy program looked fine on paper, but the technology told a different story.”
    — Osano, on the common thread across enforcement actions
  • “In Healthline, investigators found 118 tracking cookies continued transmitting data even after consumers exercised all three available opt-out methods simultaneously — a Do Not Sell link, a GPC signal, and a cookie banner.”
    — Osano, Section 2 — Opt-Out Mechanism Failures
  • “Regulators are technically testing mechanisms, not reviewing policies. Companies that rely on a consent management platform to display a banner — without verifying that the downstream suppression of tracking technologies actually works — are operating with false confidence.”
    — Osano, Section 2
  • “We're receiving about 150 complaints every single week. That number has been increasing over time.”
    — Michael Macko, CPPA Deputy Director of Enforcement, Sept. 26, 2025
  • “The opt-out existed in the interface but failed in the technology.”
    — Osano, on the pattern across every major California enforcement action

Source: Osano, 2026 State of US Privacy Enforcement. Excerpts used for commentary and analysis.

02 — Our Solution

A hybrid pre-ingestion appliance at the guest WiFi edge.

DataStop intelligently manages traffic for better performance while providing enforceable network privacy controls:

  • Real-time geolocation signal stripping and tracking prevention
  • Captive portal consent enforcement that actually works
  • Data minimization and audit logging
  • Automatic privacy notice delivery

Result: properties get stable, high-performing WiFi today — and a strong technical foundation for OCDPA compliance.

How DataStop Is Architected

DataStop is a hybrid hardware + cloud system: an edge appliance at the property enforces privacy in-line, and a separate cloud plane gives operators visibility and reporting. The specific enforcement techniques are part of the IP and are shared under NDA in the technical deep-dive.

Edge Appliance
Property-installed network gateway

A compact, purpose-built device that sits inline at the guest WiFi boundary. It inspects outbound traffic before it leaves the property — the layer where enforcement actually happens.

Consent Layer
Branded captive portal

Mobile-first portal that delivers a plain-language privacy notice and captures explicit, per-session consent — producing the documented evidence regulators look for.

Policy Engine
Configurable, jurisdiction-aware rules

Privacy obligations are expressed as policy, not hard-coded. As new state laws activate, properties get updated rule packs without swapping hardware.

Cloud Plane
DataStopDGM management dashboard

Where operators see consent rates, network performance, and download regulator-ready reports. Only de-identified metadata leaves the property — raw guest traffic never reaches our cloud, by design.

How Guest Traffic Flows

The appliance lives between the property's WiFi infrastructure and the upstream internet, so every privacy decision is enforced before data ever leaves the building.

Step 1
Connect
Guest joins property WiFi through the existing access points.
Step 2
Consent
Captive portal records the guest's privacy choices for the session.
Step 3
Enforce
Appliance applies those choices to outbound traffic in real time.
Step 4
Report
Aggregated, de-identified metrics flow to the DataStopDGM cloud.
Deployment
Drops into existing networks

Designed to sit alongside the access-point and controller hardware properties already own — no rip-and-replace of the guest WiFi.

Performance
Built for peak occupancy

Sized so privacy enforcement does not become a bottleneck during conference check-ins, restaurant rushes, or casino floor events.

Data Posture
Property-local by default

Raw guest traffic and audit logs stay on the appliance. DataStop's cloud only ever sees de-identified summaries — minimizing both property and vendor exposure.

Standards & Roadmap

Designed against
  • • Oklahoma Consumer Data Privacy Act (OCDPA) — Jan 2027
  • • The 20+ state privacy laws expanding the same obligations
  • • Hospitality network realities (mixed controller vendors, peak load)
  • • Hardware certification requirements for U.S. deployment
On the roadmap
  • • Multi-property fleet management for hotel groups
  • • Tribal sovereignty data-residency mode for casinos
  • • Regulator-ready compliance reporting
  • • Per-state policy packs as new privacy laws activate

A note on the secret sauce: the enforcement methods inside the appliance are intentionally not detailed publicly. Serious investors and design partners receive a deeper technical walkthrough under NDA.

03 — Why Hybrid Matters

Software-only compliance fails when data has already left the network.

Every guest who connects to hotel or casino WiFi generates a trail of sensitive data: device identifiers, MAC addresses, precise geolocation, and behavioral patterns. Oklahoma's OCDPA — and similar laws in 20+ other states — now classify this as sensitive personal information requiring explicit opt-in consent and enforceable opt-out controls.

Pure software solutions trust third-party ad-tech and analytics SDKs to "respect" a privacy flag. But by the time that flag is checked, the data has already been transmitted to external servers. That is exactly what happened to Tractor Supply — a $1.35 million fine because their "Do Not Sell" button never actually stopped data from flowing.

Software-only
  • • Relies on downstream vendors to honor a privacy flag
  • • Data leaves the property before consent is checked
  • • No audit trail at the network boundary
  • • Vulnerable to SDK updates that bypass flags
  • • Properties remain legally exposed
DataStop Hybrid
  • • Physical appliance intercepts traffic at the network edge
  • • Strips, anonymizes, or blocks data before it leaves the property
  • • Local audit logging for regulatory inspection
  • • Captive portal enforces consent at the point of connection
  • • Opt-out is technically enforced — not just requested

How the Hybrid Model Works

01
Guest Connects
Visitor joins property WiFi. The DataStop appliance sits between the guest device and the public internet, acting as a privacy-enforcing gateway.
02
Consent Captured
Custom captive portal presents OCDPA-compliant privacy notice and collects explicit opt-in consent before any data flows outbound.
03
Edge Enforcement
The appliance inspects outbound packets in real time. Geolocation signals, tracking headers, and device fingerprints are stripped or anonymized based on the guest's consent choice.
04
Cloud Visibility
Encrypted metadata flows to DataStop's cloud dashboard for compliance reporting and network performance optimization — never raw sensitive data.

Two Problems. One Appliance.

Guest Experience Layer

DataStop shapes and prioritizes WiFi traffic during peak occupancy — when conference check-ins, restaurant rushes, and casino floor events all hit the network at once. The result is stable, high-performing connectivity that guests actually notice and appreciate. Better reviews. Fewer complaints. Stronger brand loyalty.

Compliance Layer

The same appliance enforces privacy controls at the network boundary. Every outbound connection is inspected. Consent decisions are respected by the infrastructure itself — not by hoping a third-party SDK reads a flag correctly. Properties get defensible audit trails and a clear technical answer when regulators ask, "How do you enforce this?"

The Investor View: Defensibility & Moat

Software-only solutions cannot intercept traffic before it leaves the property, so they cannot adequately enforce privacy laws. A network-edge appliance with certified hardware, captive portal integration, and real-time packet inspection requires embedded engineering, FCC compliance, and property-level installation relationships. Once DataStop is in a property, switching costs are high — the device is physically wired into the network, and the compliance audit trail lives on it. That hardware footprint becomes a barrier to entry that pure SaaS players cannot easily cross.

04 — Market Opportunity

A regulated wedge with a published deadline.

$5.4B
TAM — hotel WiFi & network security (Fortune Business Insights, 2025)
35.5%
CAGR through 2034
$120M
Oklahoma SAM — bottom-up
15+ states
With sensitive-data opt-in rules

Market Sizing

TAM
$5.4B
Hotel WiFi & network security market (Fortune Business Insights, 2025)
SAM
$120M
Oklahoma — bottom-up: N properties × avg. selling price. Beachhead, not ceiling.
Growth
35.5%
CAGR through 2034. 15+ states with sensitive-data opt-in rules follow the same pattern.

Revenue Model — MSP Channel

MSPs install the appliance during visits they're already making. They keep 70% of the SaaS revenue; DataStop takes 30% (25% floor). Install costs us nothing — the MSP is already on-site managing the network. The immediate wedge is SIEM cost reduction; the long-term driver is OCDPA compliance they can resell.

Appliance
~$400/unit
RockChip 3588 · post-switch, pre-controller · ~$400 BOM · near-zero install via MSP
Compliance SaaS
$150/mo
Per property, recurring · DataStop nets 30% (25% floor)
Install Cost
~$0
MSPs are already on-site — no truck roll of ours
MSP Revenue Share
70% / 30%
Channel Status
3 MSPs in talks
Revenue
Pre-revenue

Funnel math: MSP partners × properties per partner × monthly SaaS. Aligned incentives from day one — the MSP keeps 70%, DataStop takes 30% with a 25% floor.

MSP Funnel — Annual Recurring Revenue

Scenario
MSP Partners
Properties / Partner
Annual Recurring
Conservative
3
20
$108K
Base
8
35
$504K
Aggressive
15
50
$1.35M

Modeled at $150/mo SaaS per property. Conservative: 3 MSPs × 20 properties. Base: 8 × 35. Aggressive: 15 × 50. Pre-revenue today — these are scenarios, not commitments.

Investment & Returns

Pre-Seed Ask
$500K SAFE
$10M cap
Use of Funds — 5 Milestones
  • • Patent filing completion — Month 3
  • • First 3 MSP pilots convert to paying — Month 6–9
  • • OCDPA compliance certification prep — Month 9
  • • AG office relationship development — Ongoing
  • • First engineering hire — Month 12
Series Seed Trigger
Month 18
Criteria defined and hit
Exit Thesis
Strategic Acqui-Hire$18M

IP, enforcement architecture, and acqui-hire. Likely buyer: Cisco Meraki — they need this layer, and buying DataStop is faster than engineering around the patent.

The Cascade15+ states

OCDPA writes the first documented case. Then 15+ states with the same opt-in rules follow the same pattern — same gap, same fix.

The Moat

Blockchain-registered architecture plus a patent filing wall off the design. The workaround is blocked — buying DataStop is faster than engineering around it.

05 — The Ask

$500K SAFE at a $10M cap. Every dollar has a job.

We're seeking aligned investors who understand hospitality, regulatory tailwinds, network infrastructure, or Oklahoma / tribal opportunities. The packet layer is unoccupied — DataStop is the enforcement layer regulatory compliance has always needed.