The Team8 Foundry Method for Selecting Investable Startups
In a recent survey conducted by venture capital organization Team8, over 130 Chief Information Security Officers (CISOs) from their own “CISO Village” were queried to determine the concerns of cybersecurity practitioners and the future technologies they seek. The CISO Village consists of approximately 350 enterprise CISOs, including those from Fortune 500 companies, who provide insights into the technologies currently in demand.
The VC Approach
Team8’s unique approach to venture capital involves not only providing investment capital to cybersecurity startups but also leveraging deep technical and managerial expertise to build new companies. With a focus on data science, AI, and fintech, Team8 aims to address genuine pain points experienced by cybersecurity practitioners rather than simply following vendor or media hype.
Team8’s strategy involves identifying market gaps based on the feedback from the CISO Village and then developing relevant startup companies to fill those gaps. They have the advantage of knowing exactly what technologies will be in demand, allowing them to build companies accordingly. This approach sets them apart as a VC organization that actively builds new companies rather than just providing funding.
The Concerns of CISOs
According to the survey, the top concerns of CISOs today are AI security, 3rd party risk management, and the insider threat. The migration to the cloud and remote working, accelerated by the COVID-19 pandemic, has created increased pressure for access management (IAM and PAM) and cloud security solutions. The emergence of publicly available artificial intelligence (AI) algorithms has highlighted the need for security against threats to and from AI. Additionally, the increasing reliance on third-party software and services requires better third-party risk management.
Addressing the AI Threat
One of the key takeaways from the survey is the growing concern around securing AI itself, rather than just using AI to improve security systems and processes. The emergence of publicly available gen-AI algorithms, such as ChatGPT, has raised awareness of the potential threats posed by AI. Team8 recognizes the importance of building trustworthy and secure AI algorithms for both internal use and securing systems.
The AI threat encompasses multiple aspects, including building unbiased algorithms, protecting them from malicious alteration by attackers, and detecting and countering malicious use of external AI. The survey highlights the need for accurate and ethical internal AI algorithms to avoid potential regulatory issues, such as bias, racism, and sexism. It also emphasizes the increased potential for phishing attacks and deepfakes generated by gen-AI algorithms.
Expert Commentary
Bobi Gilburd, Chief Innovation Officer at Team8 and a former Colonel in the IDF’s unit 8200, comments on the AI threat by stating, “I believe that the next one or two companies the Team8 will build, this and next year, will be mainly one of the cases based on this survey.” Gilburd recognizes that while the AI threat may not be immediately critical, it is coming and inevitable. Team8 aims to be prepared for this future threat by investing in AI security.
Editorial & Advice
The survey conducted by Team8 and the insights gained from the CISO Village provide valuable information for the cybersecurity industry. By addressing the identified concerns of CISOs, such as AI security and third-party risk management, Team8 demonstrates their commitment to building companies that meet genuine market needs. Their approach of combining deep technical and managerial expertise with investment capital sets them apart in the venture capital landscape.
As the reliance on AI continues to grow, it is crucial for organizations to prioritize the development of trustworthy and secure AI algorithms. The potential threats posed by AI, such as deepfakes and privacy abuses, demand robust security measures to protect against malicious use. Companies must ensure that their AI algorithms are accurate, ethically built, and resilient to manipulation by attackers.
Overall, the survey highlights the importance of aligning cybersecurity investments with the concerns of cybersecurity practitioners. By building companies based on genuine market needs, rather than following trends or hype, organizations like Team8 can contribute to the development of a more secure digital landscape.
<< photo by Octavian Rosca >>
The image is for illustrative purposes only and does not depict the actual situation.