Venture Capitalists Invest in Electronic Surveillance Companies

A notable growth industry

The string of revelations about America's surveillance apparatus by former National Security Agency contractor Edward Snowden has cast a spotlight on the growing number of American companies involved in electronic spycraft.

It hasn't visibly damped enthusiasm among Silicon Valley investors and military contractors looking for ways to get into a business many see as one of the few growth areas left as U.S. military spending contracts.

Some of the country's most influential venture capitalists and former spy chiefs are investing in companies now providing the government with the sweeping electronic spy system and evolving cyberwarfare programs exposed by Mr. Snowden.