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The Money Desk · Blog
Re:

US-Based Investors Ramp Up Commercial Spyware Investments

The Atlantic Council’s updated sample found 31 US-based spyware investors, up from 11. The increase signals a shift in investment activity, but does not prove each firm knowingly funded abuses.
From TheFinanceBase Team4 min to read
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The Atlantic Council identified 20 new US-based investors in the commercial spyware market in 2024, bringing the number in its sample to 31, up from 11. That makes the United States the largest investor jurisdiction in the Council’s updated sample—not a count of every US investor, and not evidence that each named financial firm knowingly funded abuses.

What the increase measures

The figures come from the Atlantic Council’s 2025 report, Mythical Beasts: Diving into the depths of the global spyware market. It maps 561 entities across 46 countries over the period from 1992 through 2024. Within that dataset, the number of US-based entities identified as investors rose from 11 to 31, a net increase of 20 in the updated sample. WIRED reported that the dataset’s total number of identified investors rose from 94 to 128.

Measure Earlier figure Updated figure Source and qualification
US-based investors 11 31 Atlantic Council, 2025; 20 new US-based investors identified in the 2024 update.
Investors across the dataset 94 128 WIRED’s 2025 reporting on the Atlantic Council update.
Entities and countries covered not stated 561 entities across 46 countries Atlantic Council, 2025; the dataset covers 1992 through 2024.

These are counts in a research sample, not a census of the industry. The Council describes the dataset as a snapshot through 2024 and says it does not represent the entire spyware market. “Investors” here means entities the researchers identified as having invested in the market; the count does not by itself establish how much they invested, whether they held voting control, or what they knew about a vendor’s customers and use of its products.

Why US capital is flowing into the market

The report identifies a notable shift in the geography of investment: US-based investment from 2023 to 2024 outpaced the other major investor countries represented in the earlier dataset, including Italy, Israel and the United Kingdom. It does not provide a single explanation that establishes why each investor participated. The reported increase should therefore be read as evidence of market activity and connections, not as proof of a shared motive among US financial firms.

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One structural complication is the role of resellers and brokers. These intermediaries can connect spyware vendors with investors, suppliers and customers, while making the underlying relationships harder to see. The Atlantic Council says resellers and brokers occupy a larger share of its updated sample than they did previously. This matters for investors and policymakers because following a financial or commercial relationship may require tracing connections beyond the company that develops the spyware.

Examples in the updated account

Investment in Paragon Solutions

The Atlantic Council names AE Industrial Partners’ late-2024 investment in Paragon Solutions, an Israeli spyware vendor. Paragon’s Graphite product has been associated with surveillance cases. The example illustrates that US capital can reach a vendor whose products have been linked to surveillance; it does not, on its own, establish what AE Industrial Partners knew about specific uses or whether the firm controlled the vendor.

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Investment in Saito Tech (Candiru)

The report also cites Integrity Partners’ early-2025 investment in Saito Tech Ltd, also known as Candiru. The Council says Candiru has been on the US Commerce Department’s Entity List since 2021. Because this investment is dated to early 2025, it falls after the report’s stated dataset period through 2024; it is a separately dated example, not one of the 20 new US investors counted for 2024.

Investments attributed to Cognyte

WIRED reported that the dataset includes D.E. Shaw & Co., Millennium Management, Jane Street and Ameriprise Financial, and that the Atlantic Council linked their investments to Israeli lawful-interception provider Cognyte. This is reported attribution in the dataset. It does not establish that each firm directly controlled Cognyte or knowingly supported any particular surveillance operation.

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Why the trend matters to investors and the public

Commercial spyware can enable covert surveillance of journalists, human-rights defenders, politicians, diplomats and others. That creates human-rights concerns as well as national-security risks. Investment matters because capital can help sustain vendors and the network of intermediaries around them, even as governments pursue controls such as sanctions, entity listings or visa restrictions.

The Atlantic Council describes a tension between US investment flows and US policy efforts to curb spyware proliferation and misuse. The tension is real at the market level, but the available counts do not establish the intent, due diligence or decision-making of each investor. A sound reading keeps those questions separate: the sample documents identified financial links, while firm-specific responsibility requires evidence beyond inclusion in a dataset.

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What the numbers cannot tell you

  • Total dollars invested: the reported counts do not establish the dollar value of each investment.
  • Control or influence: they do not show that every investor had voting control or operational influence over a vendor.
  • Knowledge or intent: inclusion does not prove a firm knew how a product would be used, intended to enable abuse, or failed to conduct due diligence.
  • Full market size: the Council’s sample is not a complete census, so the identified investors are not necessarily the full number operating in the market.
  • Direct responsibility for surveillance: an investment link is not, by itself, proof that an investor caused or authorized a specific surveillance incident.

The Council’s broader conclusion is that the global spyware market is growing and evolving, while intermediaries complicate efforts to trace and regulate it. For personal-finance readers, the key takeaway is to treat “invested in spyware” as a specific reported relationship that needs context—not as a complete account of a financial firm’s role, knowledge or responsibility.

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