Tech Investment Strategies and Overview

Welcome to the CISO Perspectives Weekly Briefing, where we break down this week’s conversation, providing insights into relevant research and information to help you further understand the topics discussed.

At 475 words, this briefing is about a 4-minute read.

Investing in technology.

In the technology space, venture capitalists (VCs) have become a foundational aspect of many companies' success. This relationship is mutually beneficial, as VC funding can enable a company to succeed while also providing the VC with a significant return on their initial investment. However, despite this symbiotic relationship, securing funding and ensuring a company’s success are never guaranteed.

Before the tech sector tightening in 2022, businesses were looking to invest significantly in this space. The World Economic Forum (WEF) noted how, in Europe alone from 2017 to 2022, the region:

• Scaled company investments from 8,284 to 12,382.
• Increased deployed capital from €25 billion to €91 billion.
• Went from 92 to 372 “unicorn” companies in the region.

However, when the tech crunch started, some funds marked down portfolios by 50% and limited partners (LPs), who are the investors who fund VC firms, began rapidly liquidating their assets. The effects of the downturn became even more pointed with rising interest rates and surging inflation. This crunch forced investors to reevaluate their strategies and look for markets with higher growth potential and greater traction. 

One area that quickly emerged as a standout was artificial intelligence (AI). Over the past few years, AI startups have captured an enormous share of VC funding. According to Axios, AI startups received 53% of all global VC dollars invested in Q1 and Q2 of 2025. Notably, this percentage increases to 64% within the United States (US). Stanford University similarly found that global private AI investments hit a record high $252 billion in 2024, with generative AI receiving nearly $34 billion, representing an eightfold increase.

For startups, understanding how VC priorities have shifted and where capital is flowing is more critical to success than ever.

Navigating investments.

In today’s markets, VC funding has become inextricably linked to AI. Given this trend, many seeking investment are rapidly pivoting to incorporate AI into their funding pitches. However, according to the Harvard Business Review, this flood of AI usage has created drawbacks in the quality of investment proposals. In this report, Vivjan Myrto from Hyperplane Ventures noted that “noise is at an all-time high,” and that there has been a “dramatic increase in low-quality pitches.”

Standing out now requires more than shoehorning in AI into your pitch or operations. Rather, startups must show how they will meaningfully harness these emerging technologies to accelerate timelines, improve efficiencies, and reduce operating costs. The ability to show a clear and credible path to value creation, and the ability to communicate this path, will differentiate those who will be able to attract the attention and support of VCs.