‘There’s A Lot Of Noise’ — VCs Trying To Find Clarity In Cluttered Cyber AI Landscape

The annual RSA Conference in San Francisco revealed that investors in cybersecurity startups are seeking clarity amidst the noise surrounding AI. While many startups are pitching AI-based or AI-secured solutions, investors are taking their time to invest, with some expressing skepticism about the actual AI capabilities of these startups. However, funding for AI-related cybersecurity startups has rebounded this year, with $263 million invested in Q1, compared to $103 million in Q4 of last year. The largest deal in Q1 was a $60 million Series E raise by BigID.

Other highlights from the RSA Conference include the opening news of cloud security startup Wiz securing a $1 billion round at a $12 billion valuation. There is also growing interest in startups focusing on disinformation, particularly in the context of national elections. Investors are also keeping an eye on the strengthening M&A market, with expectations of increased activity in Q4. Private equity has already been active this year, with Thoma Bravo's recent acquisition of Darktrace for $5.32 billion.

Key takeaways

Investors at the annual RSA Conference expressed a desire for clarity amidst the 'noise' surrounding AI in cybersecurity startups, with many taking their time to invest.
Funding for AI-related cybersecurity startups has increased in 2021, with $263 million invested in Q1 compared to $103 million in Q4 of 2020.
Startups focusing on disinformation are receiving interest, particularly those that can analyze data across multiple platforms like the dark web and social media.
The M&A market for cyber startups is slowly strengthening, with expectations of increased activity in Q4.

‘There’s A Lot Of Noise’ — VCs Trying To Find Clarity In Cluttered Cyber AI Landscape

Key takeaways

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