Windows users worldwide faced major disruptions on Friday due to a faulty software update from CrowdStrike, resulting in widespread outages affecting various industries. Despite the chaos caused by this incident, some venture capitalists see an opportunity for startups to develop innovative solutions to prevent such large-scale disruptions in the future.
According to CRV general partner Reid Christian, the root cause of the outage was not a cybersecurity breach, but rather the deployment of untested software by a major vendor. In response to this issue, CRV is investing in a cybersecurity and IT management startup called Fleet, which focuses on monitoring vendor instances on endpoints to prevent similar incidents.
While traditional cybersecurity measures may not have been effective in this case, alternative approaches like Fleet’s software, which operates outside the kernel, may offer better protection without compromising system stability. Lightspeed Venture Partners’ Guru Chahal also emphasizes the importance of using non-invasive security applications that do not require deep access to the operating system kernel.
In light of the CrowdStrike outage, the cybersecurity industry may see a shift towards more secure, sandboxed systems like those offered by companies such as Wiz and Oligo Security. These alternative approaches could help prevent future incidents caused by vulnerabilities in the core operating system.
Furthermore, Fin Capital founder Logan Allin highlights the growing importance of cloud observability companies, particularly as businesses rely more on external APIs and AI solutions. Startups like Middleware play a crucial role in ensuring seamless integration and data flow within complex architectures, reducing the risk of software bugs and outages.
Despite the challenges posed by the CrowdStrike outage, VCs like Allin and Chahal believe that this incident underscores the urgent need for modernizing technology infrastructure, especially in sectors like finance and healthcare. As startups continue to innovate and develop new solutions for cybersecurity and system reliability, the industry is likely to see a shift towards more secure and efficient technologies in the future.
