The US National Counterintelligence and Security Center has warned technology start-ups that foreign adversaries, including China, are using investments to acquire sensitive data and threaten national security.
The warning comes as Silicon Valley companies have stepped up their screening of staff and potential recruits in recent months due to the threat of Chinese espionage, and in some cases have been ordered by their American investors to turn away capital linked to China.
The NCSC on Wednesday shared a bulletin with US companies warning that “foreign threat actors” might use private investment such as venture capital and private equity to exploit tech start-ups in ways that could threaten economic and national security.
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