Good day. Startups are finding it hard to even get to early-stage funding rounds these days. With the ever-present pressure of artificial intelligence, many are having to think about repositioning their ideas, or re-engineering them entirely.

We recently reported on the growing number of startups looking to be acquired in the face of the AI arms race, and the numbers are now telling the same story. Just 11% of all startups that raised pre-seed or seed funding from 2020 to July 15 of this year have gone on to raise a Series A, according to data provider Crunchbase. The data also shows that the average time between Series A and B rounds has stretched to 34 months, compared with 27 months in 2021, my colleague Matthew Strozier reports in this article.

Also today:

• Senators introduce quantum safety bill.
• Justice Department settles in cyber case.
• Dutch prosecutors begin cyberattack recovery.

Justice Department Settles Over Cyber Case. The U.S. Justice Department said it had reached a $9.8 million settlement with biotech company Illumina. The government had sued the company, alleging it shipped software to federal clients without having an adequate security program and knowingly failed to incorporate security into its development practices. (Medtech Dive)

The WSJ Pro Cybersecurity team is Deputy Editor Kim S. Nash (on X @knash99), reporter James Rundle, reporter Angus Loten, and reporter Catherine Stupp (@catstupp). Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.