In the fast-paced world of startups, there is a natural tension between rapid growth and risk management. Founders are often told to “move fast and break things”, but when it comes to your data and your reputation, “breaking things” can be fatal.
Many startups operate with limited cash flow and a high appetite for risk. It is understandable that spending money on cyber security often falls to the bottom of the priority list. You might think, “We aren’t worth much yet, so why would hackers target us?”
However, while your current valuation might be modest, your goal is to build something significantly more valuable. Between now and that future success, it is all too easy to forget about security until the cyber attackers arrive.
The “Delay” Trap
As a startup in the early days, you might decide to delay implementing robust cyber security measures. This is a calculated risk. Perhaps you can wait six, twelve, or even eighteen months depending on your build speed. But the keyword here is delay.
If you do not book in your security implementation or have a concrete plan, “later” often becomes “never”. We frequently encounter founders who intend to look at security once their platform is “fully built”. Unfortunately, cyber criminals rarely wait for your product roadmap to complete.
There is a small window at the very beginning when a company is not yet on an attacker’s radar. If you have a Minimum Viable Product (MVP) that is access-only via invitation, and you are only sharing it with direct family or friends, it is indeed harder for a cyber attacker to find you. This “stealth mode” can buy you a little time to confirm product-market fit.
The Trigger Points
However, the moment you step into the light, you become a target. There are specific triggers that alert cyber criminals to your existence:
- Raising Funds: Announcements of capital raises signal that you have money in the bank.
- Marketing and Media: As soon as you start advertising, you are waving a flag to potential attackers.
- Sector: If you are in the financial sector (FinTech), you are an immediate high-value target.
Before you hit these milestones, you must consider implementing at least the cyber foundations.
The Foundations: What You Need Now
From a security perspective, you do not necessarily need an enterprise-grade fortress on day one. However, we strongly recommend implementing the “Cyber Foundations” to establish a baseline of defence. These include:
- Cyber Awareness Training: Your staff are your first line of defence.
- Password Managers: To ensure unique, complex passwords for every account.
- Malware Protection: Essential for all devices.
- Two-Factor Authentication (2FA): A critical layer of security for logins.
- Email Hardening: Protecting your domain from being used for spam or spoofing.
Once your platform is live, penetration testing becomes essential to identify vulnerabilities in your code before others do.
Preparing for Future Growth: ISO 27001 and SOC 2
As your startup expands and begins to engage with larger enterprise clients or investors, you may find that you need to demonstrate a higher level of security maturity through certifications such as ISO 27001 or SOC 2. These certifications are significant undertakings; for example, ISO 27001 involves implementing around 120 security controls.
However, the work you do now is not wasted effort. All the steps included in our Cyber Foundations package are designed to align with these international standards. By implementing these foundational controls today, you are effectively starting your journey toward future certification. This alignment means that when the time comes to pursue full accreditation, the process will be smoother because you have already established the correct habits and controls, rather than having to rebuild your security posture from scratch.
Real World Lessons: Don’t Save a Thousand to Lose Hundreds of Thousands
We have witnessed the devastating impact of delaying security first-hand.
In one instance, a startup founder told us they would never click on a phishing email and therefore did not need to “waste” money on cyber protections. They chose to accept the risk. Despite our recommendation to implement foundational controls, they declined.
Four months later, that same founder clicked a link in a phishing email. The cyber attacker gained access and used it to redirect the startup’s funding round. The financial loss and reputational damage were so severe that the startup was forced into a rush sale to avoid closing down entirely. They tried to save a relatively small amount of money and ultimately lost their company.
Another startup informed us they did not need security until their platform was fully constructed, dismissing our advice that phishing is a common early-stage threat. They were subsequently hacked via a phishing attack and required urgent assistance to contain the breach and clean up the mess.
How Vertex Can Help
We understand that startups need flexibility. That is why we offer a Cyber Foundation Package designed to be scalable. You can start by paying for only the few seats you need right now, with the option to expand the service as your team grows all the way to ISO27001 and SOC2 certfication.
Do not wait until you are the victim of a breach to take security seriously. If you are approaching a funding round, launching a marketing campaign, or have simply delayed security for too long, it is time to act.