硅谷銀行：2025年全球私募市場趨勢+Global+Private+Market+Trends+in+2025

December2024

TITLEOFREPORT

3Introduction

5TheGlobalReset

10TheAIMoonshot

13CybersecurityinaLessCertainWorld

16FintechBankstheUnderbanked

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

AndyTsao

ManagingDirector

HeadofGlobalGateway

TheDrivetoInnovateknowsNOBoundaries

AsAIgoesfromaverticaltoahorizontalinvestmentstrategy,cybersecurityisrisingtotheforefront.

Inanincreasinglycomplexanduncertainworld,businessesandgovernmentsalikeareprioritizingsafeguardingtheirdigitalfrontiers.

Finally,fintechcontinuestomakestridesin

financialinclusion,offeringsolutionsthathelp

bringbankingservicestotheworld’sunderbanked

populations.Developmentsinthesethreeindustriesarecatalyzinganevermoregeographicallydiverse

andvibrantinnovationecosystem.

AtSVB,weareproudtohaveworkedforover20

yearswithclientswhoareleadingthischargeas

theybridgemarketsandbuildthetechnologiesoftomorrow.Whilethepathaheadmaybeuncertain,onethingisclear:Thedrivetoinnovateknows

noboundaries.

Theglobalventurecapital(VC)landscapeis

navigatingunchartedwaters.Aswelookahead,itisimpossibletoignorethechallenges—adownturninVCfunding,internationaltradetensionsandevolvingregulatoryenvironmentstonameafew.Yet,within

thesecomplexitieslieextraordinaryopportunitiesforinnovationandgrowth.

ThisreportcapturesthepulseofglobalVC,

highlightingnotonlytheobstaclesbutalsotheremarkableresilienceoffounders,investorsandecosystemsworldwide.Wefocusonthreekeysectors:artificialintelligence(AI),cybersecurityandfintech.

AIhasemergedasatransformativeforceinthe

innovationeconomy.Ithascapturedasignificantshareofinvestmentasitexpandsfromtherealmoffundamentalmodelstotheapplicationlayer,reshapingindustriesacrosstheglobe.

GLOBALPRIVATEMARKETTRENDS3

EuropeanTechBolsteredbyDeepTalentpool

“Europe’sstrongtalentpoolandtopnotcheducation

systemshaveenabledalotofR&DintheAIfield.Not

surprisingly,companieslikeGoogleandMetahavelarge

R&DfacilitiesinParis,andOpenAIjustannouncedthe

openingofaParisoffice.Wehavestrengthenedourearly

stagefundingecosystem,andcompaniesareeasilyfindinginitialfundingrounds.Theregioniswell-positionedtotakeadvantageofAIasamacrotrend.”

RézaMalekzadeh

GeneralPartner

Forchina,theMainlssue

isLiquidity,NotGeopolitics

“Thesinglebiggestissuefromaninvestorstandpointisliquidity.Foraperiod,ShanghaihadmoreIPOsthananywhereintheworld.Today,thesituationhaschanged.

IftheChinesemarkethadthesamelevelsofliquiditytodayasitdidin2015-2019,geopoliticalconcernswouldbelesspronounced.Still,investorswithalong-termhorizonare

deployingcapitaltopositionthemselvesforthenext

decadeofChineseeconomicgrowth.”

GaryRieschel

FoundingManagingPartner

lncybersecurity,IsraelstandsAbovetheRest

“TheIsraelicybersecurityecosystemhasbecome

sophisticatedandinterconnected.Allofthefoundersworktogetherandknoweachother.It’stightknit;

informationisexchangedquickly.TheglobalinvestorbaseunderstandsthatthisisabenefitandthereforeprefersIsraelicompaniesinthecybersecurityspace.Acquirersarealsotakingnotice.TheyrealizethatthebestcybersecuritycompaniestendtobeIsraeliandshopforopportunitieshere.”

AmitKarp

Partner

LatAmisReadyfortheAIRevolution

“SomeofthebiggestopportunitiesinLatAminvolve

GenAI.Whentheinternetstarted,manyinLatAmdidn’t

havecomputersathome.Whensmartphonescameout,theyweretooexpensiveformostpeople.ButasGenAIis

rolledout,everyonehasinternetandaphonetoleverage

itscapabilities.Imagineallofthepotentialdevelopment

andservicesthatcanbeprovidedaroundthistechnology.”

JimenaPardo

ManagingPartner

FintechinBrazilandLatAm

HasBeenDecadesintheMaking

“Itisn’tasurprisethatfintechexplodedinBrazil.

NubankandPixdidn’trandomlyappearoutofthinair.

Inthe1970s,thelegalandeconomicframeworkwas

constructedtoencourageprivatebusiness.Inthe1980s,

banksandgovernmentstarteddevelopingtechsolutions

tofightinflation.Instanttransfersweredeveloped.More

recently,regulatorychangeshaveencouragedcompetition.Together,thisturnedfintechintoaflagshipsectorinBrazilandLatAmgenerally.”

EricAcher

Co-Founder,ManagingPartner

4

GLOBALPRIVATEMARKETTRENDS

TheGlobalReset

GLOBALPRIVATEMARKETTRENDS5

Tradewinds

Insomesense,theworldhasgottenriskierforinvestors,withgeopoliticaltensions,securityissuesandtrade

policiesraisingregionalconcerns.Investorsarereactingtotheseissuesbyadjustingtheircross-borderstrategiesandinternationalexposures.

Thebifurcationoftheglobaltechmarketisperhaps

oneofthebiggestdriversofchange.Inthe2010s,Sino-

Americaninvestmentsurged;however,todaythereversalofthistrendisinfullswingandisleadingtoadecouplingofUSandChinesetechmarkets.Incontrast,Other

Asia1andIndiahaveseenincreasedinterestasforeigninvestorsviewtheseregionsassaferalternativesfor

geographicdiversification.

Still,GaryRieschel,FoundingManagingPartneratQimingVenturePartners,suggestedthatwhilethiscancause

problemsinsomeareas,itoffersopportunitiesinothers.“TheuseofUSenterprisesoftwareisdiscouragedin

China,leadingthecountrytodesignitsownsystems.Thisisabigopportunityandveryinvestiblearea.”

Meanwhile,tradepoliciesandsupplychainissueshaveledinvestorstogreenerpastureselsewhere.On-shoringandfriend-shoringcontinuetobeprominentthemes,

withcross-borderinvestmentbetweentheUSandits

neighborsincreasing.Ascybersecurityandtechnologicaldominanceincreasinglybecomenationalsecurity

concerns,thetrendtoinvestinalliedcountriescontinuestogrowwithimplicationsforVCfunding,startupgrowthandinnovationeconomiesaroundtheworld.

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

FDIfromtheUStotheRegion

Canada

$672B

$275B$452B

$189B

FDIfromtheRegiontotheUS

EuropeandUK

$4.0T

$3.5T

$2.0T

$1.5T

China

$217B

$105B

$46B

$6B

OtherAsia1

$818B

$543B

$276B

$223B

EUR

CAN

ISR

CHI

IND

MENA

f

OA

7

LatAm

LAT

$340B

ANZ

$218B

$62B

$15B

Israel

$46B

$10B

$9B

$8B

India

$50B

$22B

$3B$5B

Notes:1)Taiwan,Singapore,SouthKoreaandJapan.2)DoesnotincludeIsrael.

Source:BureauofEconomicAnalysisandSVBanalysis.

MiddleEast,NorthAfrica2

$40B

$25B$35B

$12B

AustraliaandNewZealand

$202B

$114B

$112B

$38B

GLOBALPRIVATEMARKETTRENDS6

placeLikeHome

ItisnosecretthatVCfundraisingtookahitin2024,

butnotallregionsareexperiencingthedownturnequally.

WhilefundraisingintheUSandEuropehasresettopre-COVIDlevels,countriessuchasChinahavestruggledtoregaintheirfooting.Familyofficesarepartofthereason.

Thesegroups—bigfundersininternationalmarkets—remainskittishafterdifficultiesexperiencedduringthepandemicandareslowtocontinueallocatingtothe

region.Therecontinuestobearisk-offsentimentamongLPsintermsofcross-borderinvestment

amidtradepolicyfears.ContinueddifficultyrealizingexitsfromChineseVCfundshasnothelped.

Further,ChineseVCdisproportionatelyrelieson

domesticLPinvestors.WhileUSVCsenjoysizable

allocationsfromLPsinmanyregions,LPsinother

regionsgenerallyinvestmorewithlocalGPsandhavesmallallocationstoChineseVC.Takentogether,thesefactorshavelimitedChineseVCfundraisingoverthepastcoupleyears.ItisnotonlyChinathatismanaginga

difficultfundraisingenvironment.Emergingmarket

managershavehadahardgoatfundraisinginthepost-ZIRP(zerointerestrateperiod)erathatismarkedby

amorerisk-aversesentimentamongLPsoverall.

Fundraisingdataisnotallnegative,however.Gulfstatemegafunds,forinstance,havemaintainedtheirinterestinforeignVC,servingasapartialbackstoptothelimitedfundingfromtheUSandEuropeanLPbases.

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

GlobalvcFundraising,BYRegion

USChinaEuropeandUKOtherAsia4

Other

$16B$13B

$24B

$11B

$114B

$113B

$7B

$10B

$14B

$12B

$9B$22B

$26B

$64B$70B

$14B$20B

$100B

$158B

$146B

$26B

$10B

$22B

$98B

$86B

$54B

$14B

$7B

$9B

201920202021202220232024e

23%

21%

●

20%

●

.

18%

.

17%

2

AverageForeignLPInvestmentinuspEandvcFunds

21%

20%

19%

18%

.

.

21%

.

●

16%

Post-COVID,foreignLPrepresentationinfundsresets.

Pre-COVID,foreign LPrepresentationinfundstrendsup.

’14’15’16’17’18’19’20’21’22’23’24

FundVintage

InstitutionalInvestorsTendtoInvestwithLocalFundManagers3

AverageRegionalExposureofTOP10LP'sprivateFundportfolio,byRegion

LocationofPE/VCFund(GP)

LocationofInstitutionalInvestor(LP)

OtherAsia4

12%

1%

1%

1%

84%

0%

0%

US

UK

Europe

China

OtherAsia4

India

MENA

Europe

30%

19%

38%

3%

2%

1%

1%

China

8%

1%

0%

88%

1%

0%

0%

India

6%

0%

0%

0%

0%

93%

2%

UK

37%

33%

17%

3%

0%

2%

2%

US

78%

9%

5%

4%

1%

0%

0%

24%

5%

5%

2%

3%

31%

28%

MENA

ForatypicalMENALP,31%ofits

investmentsare

withUSmanagers...

…while28%arewithMENAfundmanagers.

Notes:1)Datafor2024isasofDecember5andisscaledtorepresentafullyear.2)Percentofafund’scapitalcommittedbyforeignLPs,averageacrossVC,growthandbuyoutfunds.DatathroughH12024.3)Thetop10LPswerechosenforeachregionbythenumberoffundmanager

relationships.EachLPportfolio’sregionalexposurewascalculatedbythenumberoffundcommitmentsinthatregion.Columnsmaynotaddto100%duetoLPsinvestinginregionsoutsidethesetop7.4)Taiwan,Singapore,SouthKoreaandJapan.

Sources:Preqin,SVBproprietarydataandSVBanalysis.GLOBALPRIVATEMARKETTRENDS7

onGIobalvc

Byincreasinginterestrates,centralbankssucceededintaminginflation.Unfortunately,theyalsotamedVCinvestment,whichdecreasedineveryregioninline

withmonetarypolicytighteningglobally.

Asinterestrateshavechanged,currencieshavealso

fluctuatedsignificantly,duetomyriadmacroshocks

suchastheCOVID-relatedsupplychainissues,armedconflictsand,importantly,disparatemonetaryandfiscalpolicyapproaches.Intheshort-term,FXfluctuations

canhaveasizeableimpact,evenamongwhataregenerallyconsideredrelativelystablecurrencies.

Consider,forinstance,aUSVCthatisinvesting$10MinaChinesestartup.Ifthedealtakestwomonthstoclose,

thereisa1-in-10chancethattheUSDwilldepreciate,requiringtheUSVCtoinvest$230,000morethantheplanned$10Minlocalcurrency.2

Whilehedgingcanmitigatetheserisks,long-term

effectsarenaturallymuchhigherandmoredifficultand

expensivetohedge.Theselong-termfluctuationsare

especiallyimportanttoLPsinvestinginforeignVCfunds.Inmanycases,FXchangescanworkinanLP’sfavor

thankstoarisingdollar,asithaswithTurkishinvestors

inUSVCfunds.Butthereversecasecanhappenaswell.FXfluctuationscannotbereliablypredictedortimed,with

cross-borderinvestorsassumingtheriskandhopingthatgrowthultimatelyoutweighscurrencyexposure.

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

23%

21%

20%

19%

11%

19%

13%

10%

9%

8%

8%

0%

VCInvestmentbyRegionversusInterestRates,ex-us

ChinaEuropeOtherAsia5India

OtherCentralBankRateBasket

$83B

$38B

$29B

$38B

$40B$20B

$64B$157B

$79B$68B

$47B

$60B$26B

$80B

$118B0.11%

$70B

$26B$26B

$119B

$148B

$159B

$31B$22B

$32B$20B$67B

$97B

3.85%

3.50%

0.86%

201920202021202220232024e

Long-TermFXTrendsweighonLPS3

ReturnsofusDDenominatedvcFundsinHomecurrencies

55%

75th

Percentile

Median

25th

Percentile

ATurkishLPinvestedinthemedianUSDVCfundcouldseea27%returninTRY,

27%

comparedto8%inUSDduetocurrencychanges.

28%

8%

-1%

-2%

-2%

EUR

-1%

-3%

USD

CNY

JPY

BRLTRY

GBP

short-2

1othpercentileshiftsfor$1OMVCInvestmentovera2MO.period

$10.65M

IfaBRLdealtakes2monthsto

close,aUSVCfacesa1-in-10chanceofneeding$650kmorecashattheclosingdate.

$10.49M

$10.40M$10.41M

$10.37M

$10.37M

$10.23M

CNYGBPEURKRWJPYMXNBRL

still,Geographicpreferencesstayconsistent4DestinationforuspE/VCFunds'InternationalInvestments

EuropeN.AmericaAsiaIsrael

RestofWorld

10%4%

15%

13%

59%

8%4%

13%13%

62%

20232024

Notes:1)DataasofNovember18,2024isextrapolatedtorepresentafullyear.Locationbasedonthecompanyreceivingtheinvestment.RatebasketrepresentstheaverageratesfromtheUSFed,EuropeanCentralBank,JapaneseCentralBankandtheBankofEngland.2)ConsideraUSVCthatwantstoinvest$10Mofforeigncurrencyequivalentinaforeigncompany.Ifthedealtakes2monthstoclose,whatisthe10thpercentiledownsidefromFX?Dataspan2014-2024.3)SampleofUSD-denominatedVCfunds,vintages2000-2019.FXasofthedateofeachcashflow.4)InvestmentsbyUS-basedfundsintonon-US-HQ’dportfoliocompanies.Datafor2024isforH1only.5)Taiwan,Singapore,SouthKorea,Japan.

GLOBALPRIVATEMARKETTRENDS8

Sources:PitchBook,Preqin,S&PCapitalIQ,SVBproprietarydataandSVBanalysis.

Theliquiditycrunchhasimpactedallcornersoftheglobe,slashingexitnumbersintheUS,China,Europeand

elsewhere.Still,brightspotsremain,namelyIndia.

In2024,IPOsdecreasedacrosseveryregion,exceptIndia,markingaprofoundshiftinglobalexitmarkets.

In2020-2022,ChinaledthepackintermsofglobalIPOs,butthatdesignationhasshiftedrapidlytoIndia.In2024,Indiasawover200IPOs,morethandoublethenumber

in2022.Partofthereasonhasbeenamaturingofpublicfinancialmarkets.Strongperformanceofrecently-publiccompaniesoverthepastseveralyearshasalsohelped.

Sincethestartoftheratehikingcycle,theUSIPOindex

hasonlyjustrecovered.India’sIPOindex,meanwhile,hasshowntremendousgrowthofover50%.ThehealthoftheIndianIPOmarketisleadingtoarethinkamongstartupsandVCs,encouragingthemtopursueapubliclisting

domesticallyinsteadofaimingfortheUS.

Otherregionsareshowinggreenshootsaswell.InDubai,fooddeliverycompanyTalabat’spubliclistingissettobethelargesttechIPOgloballythisyear.BeyondIPOs,M&AactivityhasbeenstronginregionssuchasEurope,whose2023levelssurpassedeventhepeaktimesof2021.

Still,thegeneralliquiditycrunchhasimpactedthe

recyclingofcapital.Withoutdistributions,LPsarepausingallocationstonewfundsandlookingtoVCsthatidentify

potentialexitopportunitiespreemptively.Becauseofthis,manyVCshaveeschewedregionswithpoorliquidity,suchasChina.

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

countofIPOS,TOPRegionsHighlighted

IndiaANZOtherAsia1Europe

2

IndiaversususIPOIndexsincestartofRateTighteningcycle

India’sBSEIPOIndexUS’sRenaissanceIPOIndex

US

80%

60%

40%

20%

0%

-20%

-40%

-60%

198

230

451

55.9%

Indiagrows,

bucking

globaltrend.

-0.6%

79

182

234

213

101

81

196

161

96

421

412

178

207

88

123

295

590

206

537

140

ChinaOther

Mar.’22

Jul.’22

Nov.’22

Mar.’23

Jul.’23

Nov.’23

Mar.’24

Jul.’24

Nov.’24

80

482

327

100

220

2020

306

166

2021202220232024Q1-3

M&AReturnstoAroundpre-COVIDLevels3USVCSFleechinaAmidLiquidityFears5AggregatevalueofM&AforvcandpEBackedcompaniesshareofGreaterchinavcDealvaluebyInvestorRegion

China

Canada

OtherAsia4

EuropeMENA

EuropeUSRestofWorld(ex-China)

$11.1B

$4.6B

$17.7B

$5.9B$6.6B

$8.0B

$1.3B

$7.2B

$11.3B

$3.5B$4.7B$4.7B

$18.7B

$50.7B

$5.1B

$41.8B

$27.1B

$18.8B

25%

13%

14%

13%8%

7%

6%

7%

3%

9%

7%

2%

11%

3%

7%

5%

6%

6%2%

3%3%

2%

3%

3%6%

In2024,just10%ofChineseVCdealvolumeincluded

foreigninvestors.

13%

17%

20202021202220232024e201520162017201820192020202120222023H1'24

Notes:1)Taiwan,SouthKoreaandJapan.2)DataasofNovember19,2024.3)Selectregions.DataasofNovember20,2024;2024scaledtorepresentafullyear.4)Taiwan,SouthKorea,SingaporeandJapan.5)Inthischart,GreaterChinareferstoMainlandChina,Macau,HongKongandTaiwan.

GLOBALPRIVATEMARKETTRENDS9

Sources:WorldFederationofExchanges,S&PCapitalIQ,PitchBookandSVBanalysis.

TheAIMoonshot

GLOBALPRIVATEMARKETTRENDS10

AIhasemergedasararebrightspotinanotherwise

challengingglobalVClandscape.AInowaccountsforone-thirdofallVCdeployedworldwide,underscoringitspivotalroleinreshapingthefutureoftechinvesting.

TheUSremainsadominantforce,drivinghalfofall

AI-relateddeals.Yet,datasuggestsastrikingshiftinglobaldiversification.In2011,theUSaccountedforover60%ofAIprojectsonGitHub;today,thatshare

hasdroppedtojust25%.Meanwhile,developmentincountrieslikeIndiaandotheremergingmarketshas

steadilyincreased.Thisevolutionisfueled,atleastinpart,byagrowingemphasisontheapplicationlayerofAIinemergingmarkets.Unliketheresource-

intensivedevelopmentoffoundationalAImodels,theapplicationlayerfocusesonintegratingAIintoindustry-specificsolutions.

“Thefundamentalmodelsarebeingbuiltbythebig

techcompanies.LatAmstartupsdonotcompetehere,”notesJimenaPardo,managingpartneratHiVentures,aMexico-basedVC.“Instead,theAIbeingbuiltin

LatAmistheapplicationlayer—forexample,buildingAIintoafintechorhealthcarecompany.”These

projectsaresignificantlymorecost-effectiveto

developandoffergeographically-tailoredinnovations,whetherinLatAmorotheremergingmarkets.

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

60%

50%

40%

30%

20%

10%

$141B

$56B

$123B

$96B

$71B

$89B

AIvccapitalInvestedasa%ofTotalvccapitalInvested

VCCapitalInvestedAIVCCapitalInvested%AICapital

$863B

33%

●

24%

$556B

●

$440B

17%

$364B$370B

.

16%

14%

$401B

16%

.

201920202021202220232024e

AlDevelopmentGeographicallyDiversifies

GitHubAlprojectsbyGeographicArea

HalfofAIDealsAreinNon-2vcandGrowthAlDealcount,byRegionandyear

Europe

China

OtherAsia4

US,CanadaOther

14%

8%9%

12%

9%8%

11%

8%6%

25%

13%

14%

8%10%

13%8%10%

8%9%

28%

28%

27%

30%

29%

50%

42%

42%

45%

40%

40%

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

201920202021202220232024e

wealthycountriesFocusonModels3cumulativeNumberofNotableAlModels,byRegion

ChinaEuropeIndiaUSOtherCanadaOtherAsia4ChinaEurope

450

400

350

300

250

200

150

100

50

0

0%

USOther

20102012201420162018202020222024

2011201320152017201920212023

Notes:1)DataasofDecember5,2024;2024isextrapolatedtorepresentyear-endtotals.2)DataasofNovember22,2024.2024dataisextrapolatedto

representyear-endtotals.3)AnAImodelisclassifiedasnotablebyEpochAIifitishighlycited,historicallyrelevant,significantlyusedormajorlyimproved.

4)Taiwan,Singapore,SouthKoreaandJapan.

Source:PitchBook,GitHub,StanfordUniversity,EpochAI’s“DataonNotableAIModels”andSVBanalysis.GLOBALPRIVATEMARKETTRENDS11

AscapitalhaspouredintotheAIspace,unicornshaveproliferatedglobally.

TheUSdominatesthemarket,withmoreAIunicornsthantherestoftheworldcombined.Fortheirpart,USVCsare

veryactive,notonlyinvestinginUSAIbutineveryAI

unicornglobally—exceptinChina.Infact,many

ChineseAIcompanieshavereachedunicornstatuswithoutasingledisclosedUSVCinvestor.AIisakeyareaofthedecouplingoftheUSandChinesetech

sectorsasthetwonationsracefordominanceinthefield,whetherintermsofcomputingpower,investmentdollarsorengineeringtalent.

WhileotherregionshavefewerAIunicorns,thereare

greateffortstocatchup,oftendrivenbygovernments.

InSaudiArabia,forexample,thegovernmentrecently

putup$100billioninfundingforAIinfrastructureand

startupsthroughitsProjectTranscendence.TheFrenchgovernmenthassimilarlydeployedseveralprogramsthathaveledParistobetheemergingAIcapitalofEurope.

“ThegovernmenthasdoneagreatjobinencouragingtheFrenchtechecosystem,improvingthefunding

environmentandremovingalotofredtape,”saidRézaMalekzadeh,GeneralPartneratPartechPartners.“This

hasallowedthestartupecosystemtothrive,as

evidencedbythecreationandfundingofrecentFrenchAIstartups.”

svb》SBiaiinckonvaley

ADivisionofFirstcitizensBank

RelativeSizeofUnicorn,BasedonLastValuation

China

WhiteBorderIndicatesNoKnownUSInvestors1

Canada

UK

Other

Europe

France

Germany

Turkey

Israel

自

India

Japan

Singapore

Australia

Vietnam

104

206

CountofNon-USAIUnicornsCountofUSAIUnicorns

$511B$927B

ValueofNon-USAIUnicornsValueofUSAIUnicorns

Notes:1)AIunicornsbycountry,excludingUS.DataasofOctober10,2024.CompanymusthaveAIlistedasatleastonevertical.Valuesbasedonthemostrecentvaluation.InvestorlocationanalysisconsidersonlyinvestorslistedinPitchBook.

GLOBALPRIVATEMARKETTRENDS12

Source:PitchBookandSVBanalysis.

cybersecurityina

Lesscertainworld

GLOBALPRIVATEMARKETTRENDS13

toLOOKAoroad

Intoday’senvironment,AIhasbecomea“musthave.”

Mixinthefactthatthepandemicforcedcompaniestogodigitalandthatdataisbeingusedandsharedin

completelynewanduniqueways.Thishasprovidedopportunityfordatatobecompromised,making

cybersecuritymoreimportantthanever.Forcontext,thenumberofUScybercrimecomplaintsandestimated

lossesareprojectedtojump10%and21%,respectively,in2024.1Cybersecurity’simportanceisalsobeing

reflectedinthestrengthandresilienceofVCinvestmentflowingintocybersecuritystartups,which,whiledown,hasfairedfarstrongerthanotherindustries.

Oneoftheeffectsofthepandemicisthatitremoved

bordersforcapital.Thisisevidentintheshareofdeals

anddollarsthathavegravitatedtowardsinternational

cybersecuritystartups.AmongthebiggestbeneficiariesofthistrendisIsrael—acountryknownforitsstrongtechnicalbackgroundandcollaborativeecosystem.

Infact,alongwithSingapore,IsraelhasbeenoneofthestrongestcountriesforVCinvestmentrelativetoitssize,attractingmorecapitalthanothercountrieswithsimilarGDPandeventhosewithgreatersize.AndtheheadlinefiguresmaybeundersellingIsrael’sdominance.WhenincludingcompanieswhosemainoperationsorC-

suitearelocatedinIsrael,itsVCinvestmentfor2024nearlydoubles.

svb》SBiaiinckonvaley

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GlobalCyberVCDealCountGlobalCyberVCInvestment

UnitedStatesUnitedKingdomChina

IsraelOther

CapitalInvestedDealCount

1,600

1,400

1,200

1,000

800

600

400

200

0

$24B$21B$18B$15B$12B$9B$6B$3B$0B

100%90%80%70%60%50%40%30%20%10%0%

100%90%80%70%60%50%40%30%20%10%0%

2012201620202024

2012201620202024

20102012201420162018202020222024

2024GDP(CurrentPrices,USD)

$5,000B$4,500B$4,000B$3,500B$3,000B$2,500B$2,000B$1,500B$1,000B $500B$0B

IsraelandSingaporehaveahigherproportionofVCinvestmentcomparedtoothercountriesofsimilarVCinvestmentorGDP.

Israel’s“true”VCinvestmentfigure

GDPtoVCInvestmentRatio4

Country

Ratio↑

Israel57.1x

Singapore96.6x

UnitedStates143.8x

Austria157.8x

UnitedKingdom178.5x

Sweden236.6x

Switzerland286.3x

Taiwan303.4x

Canada309.4x

Belgium335.0x

$0B$2B$4B$6B$8B$10B

2024VCInvestment

Notes:1)FBI’sInternetCrimeReport2024.2)VCincludesallrounds,seriesandstages.Itexcludescrowdfunding,grants,equityforserviceandcorporate

dealsnotassociatedwithaseries.CybersecurityverticaldeterminedusingPItchBooktaxonomy.3)CountrieswithsimilarVCinvestmentorGDPtoIsrael

chosenforanalysis.GDPestimatedbyIMF.VCinvestmentextrapolatedasof11/15/2024.Israel’s“true”VCinvestmentfigureincludesfundingforcompanieswhosemainoperationsorC-suitelocationsareinIsrael.4)Advancedcountrieswith>$100BGDP.Israelratiodeterminedusingthe“true”investmentfigure.

Source:FBI’sInternetCrimeComplaintCenter(IC3),PitchBookData,Inc.,InternationalMonetaryFund(IMF)andSVBanalysis.GLOBALPRIVATEMARKETTRENDS14

Israel’sstrongeducationsystemandmilitaryintelligence

influencehavehelpedIsraelestablishitselfasoneofthetopecosystems.AsAmitKarpatBessemerVenture

Partnersputit,“Whatyou’reseeingistha