What you need to know:
- AI security is gaining importance as AI applications and threats grow. As generative AI matures, expect continued market growth and investment.
- Corporate VCs are actively investing in AI security startups, suggesting AI security is a priority for large enterprises as they look to address potential risks in AI development and deployment.
- While exit activity in AI security has been limited so far, recent acquisitions and rising corporate interest indicate more M&A is likely on the horizon. High-potential startups like Lakera and Harmonic may be attractive acquisition targets.
One of the most notable cybersecurity categories at the moment is AI security.
Startups in the space have raised just over $350M across 21 deals YTD (as of 10/7/2024). This marks a big funding increase compared to prior years and has been driven almost entirely by early-stage activity.
Source: CB Insights — AI security market report
AI security is a key area for enterprises to watch as AI-powered applications and new attack surfaces — from customer service chatbots to fraud detection algorithms — proliferate. As generative AI matures, we expect company formation and investment in the market to continue to rise.
In this brief, we use CB Insights data to analyze the market’s momentum, including startup acquisition targets and the corporate investors making bets in the space.
Here are 3 trends to keep on your radar.
1. Emerging categories address new AI threats
