svb>Silicon ValleyankA Division of First Citizens BankThe Rise of CyberAlThe Intersection of GenAl and CybersecurityMay 2024CyberAl:Securing the Next Frontiernoun [sahy-berey-ahy]implying ample opportunity fornew startups to help fill thatgap.These are just two tailwinds that weAndrew MoCartyVice PresidentInvestor CoveragesvbSilicon ValleyBankMacroDrivers of CyberAlMacro TailwindsSecurity ConcernsEmerging CyberAl EcosystemSupport for CyberAl InfrastructureMounting Costs of CybercrimeFormation of CyberAl StartupsGovernment funding from programs in theCybercrime losses increased nearly nine-foldNew companies are forming an emergingCHIPS and Science Act and the Departmentfrom 2017 through 2023,spiking in the post-CyberAl ecosystem.Between 2020 and 2023,of Defense cybersecurity budget are majorthe number of CyberAl companies formedcybersecurity demand and spend,drivingnecessary for growth in the CyberAl space.investment in the space.four-year period.Investment from CorporatesShifting Attack SurfacesVCs Investing in CyberAl CompaniesLarge corporates have grown their researchMany GenAl apps were built without securityarms overthe past decade to support Alcompanies.Venture capital (VC)inve storsmodel growth.Microsoft has invested $10B inAl researcherscontinue to advance datacontinue to pump moneyinto cybersecurityOpenAl,and IBM has acquired 30+companiessecurity.but much of what underpins aand Al startups,allowing them to maintainworking LLM remains vulne rable.high burn and focus on growth.Ubiquity of ChatGPTUse of Al by Bad ActorsInvestor Interest in CyberAl FundsReleased in 2022,ChatGPTbrought GenAl toAl increases efficie ncy not only of legitimateRecognizing growth in the sector,investorsthe masses.While not the first large languageenterprises,but also of cybercriminals.are strategically focusing on CyberAl.Amongmodel (LLM),its wide adoption marked a long-US VC funds raised in 2023,those mentioningterm tectonic shift in how businesses andphishing emails at scale.In 2023 alone,consumers interact with the technology.phishing emails increased 13-fold.1close their funds as those that didn't.svb)Silicon ValleyBankTec(h)tonic Shifts inCompanies'Use of Al Expected to GrowWorking Hours Impacted by Althe Making12%38In the earty 2000s,every pitch deakhad to give a nod toof Al.There are now moe than 7,500 US VC-baakedcompanies that have Al as part of the山r8oad也andto rea lize the potential automa tion and augmenta tion ofCybersecurity Spending SkyrocketsCybercrime Losses Continue to Climb7里00202220232024201720201920202021svb)Silicon ValleyBank