Cybersecurity Stocks Rise as AI Safety Fears Drive Investor Shift to AI-Native Security

Cybersecurity stocks are climbing as mounting concerns over AI safety and rogue agents push investors toward AI-native security startups, Index Ventures partner Shardul Shah said on TechCrunch's Equity podcast on Sept. 23, 2026. Shah, who has spent nearly two decades investing in cybersecurity and enterprise software, argued that periodic, human-in-the-loop security models can no longer keep pace with AI-driven threats. He pointed to startups like Instinct and Simile raising nine-figure rounds at valuations that would have been implausible just a few years ago. Index Ventures continues to back AI-native security companies at earlier stages than previously required, Shah said. He cited the firm's six consecutive rounds in cloud security startup Wiz, which Google acquired for $32 billion earlier this year in one of its largest-ever acquisitions.