DataTribe Co-Founder Mike Janke discusses the venture capital and private equity communities' responsibility to ensure we are not empowering nation-state adversaries.
Venture Capitalist in Cyber Security, multi-time CEO and founder, Former Navy SEAL and author.
Funding our Adversaries: We need a cohesive strategy to force and penalize American VC and PE firms from continuing to fund the technology programs of our adversaries. No Good Return Comes from Funding our Adversaries We are at war. There is no doubt about it. Nation-state adversaries are attacking us at this very moment. #China, #Russia, #Iran, and #North Korea attempt to leverage the #cyber and technology battlefields to inflict harm on U.S. economic and national security every day. Oh, I forgot to mention that China’s IP theft costs U.S. companies $600 billion a year. Our Venture Capital and Private Equity machines are fueling Chinese military and intelligence capabilities with one purpose – defeat the U.S. economically and militarily. Ouch. Research earlier this year from Future Union highlighted the stark reality. It found that nearly half of the top 100 venture capital investors have directly invested in Chinese companies focused on overtaking U.S. technology dominance. Future Union found that GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International invested nearly $2 billion in Chinese artificial intelligence (AI) companies and more than $1 billion in semiconductors. We are in a technology arms race where #AI is the next great weapons platform, and semiconductors are the foundational “natural resource.” We cannot have a system funded by Americans that contributes to the war efforts of our enemies. Are #venture capital and private equity firms knowingly working with companies owned and groomed by the Chinese Communist Party (CCP)? It is hard to claim naivete when you are investing billions of dollars. It doesn’t take a lot of digging to find CCP fingerprints. There are no good explanations or excuses – none. Some might ask, “Isn’t it the primary responsibility of venture capitalists and private equity firms to make the largest return possible for their investors?” Yes, that is true, but realizing a short-term gain that ultimately leads to long-term destruction is not a return in the best interest of American investors. It is time to shine a light on the dark investment underworld that is working against the best interests of its constituents. We need stronger regulation and oversight of overseas technology investments. The venture capital and private equity industries must fully disclose who, when, and what they have invested in China. There is a reason that Global Open Source Intelligence (OSINT) pioneers like Strider Technologies - is one of the fastest growing tech firms in the U.S by revenue. The private sector is lightyears ahead of Governments in using OSINT and data science to see who is who in China, Russia and Iran. It is time that investors have the opportunity to prevent their money from aiding and abetting China’s mission of American destruction. #venturecapital #cybersecurity