U.S. Warns Tech Startups on Foreign Investment Risks, US

The U.S. government has warned emerging technology developers about the risks of accepting investments from foreign adversaries. The Office of the Director of National Intelligence’s National Counterintelligence and Security Center and partner organizations stated that adversaries may steal sensitive data from U.S. startups and threaten national security. U.S. emerging tech startups are at the forefront of American innovation, but they face risks when seeking potential foreign investment to expand their firms, Michael Casey, director of the NCSC, commented in a press release. In the joint bulletin, security officials provided examples of how foreign adversaries may take advantage of startups using U.S.-based partners or intermediaries to avoid scrutiny. The two-page document specifically mentions a 2018 U.S. trade representative warning about the Chinese government using U.S. companies to obtain technologies and intellectual property. It also warned that companies that become victims of foreign threat actors end up in failure. To mitigate risks, startups are encouraged to thoroughly vet potential investors and limit data that should be shared. The joint bulletin was also published by ODNI’s Office of Economic Security and Emerging Technology, the U.S. Air Force Office of Special Investigations, and the Naval Criminal Investigative Service.