Why Startups Can’t Afford to Delay Cybersecurity

When the founders are trying to do everything, and the biggest worry is whether you will be able to make payroll at the end of the month, it’s easy to just paper over your security cracks.

You may assume that cybercriminals will overlook a small, unknown startup.

That assumption is wrong. Today, AI tools trawl the internet for weaknesses at scale. Hackers don’t need to know your name to target you. A single unprotected endpoint or careless click can bring your business to a halt.

Startups need to think about cyber security from day one - because fixing it later is far harder and more costly. To make it clear why, we will look at cyber security in reverse chronology, starting with your scale up ambitions and working backwards.

Preparing for Scale and Exit

As a business matures, security becomes non-negotiable. Whether the end goal is acquisition or an IPO, investors and buyers expect robust processes, clear policies, and a proven track record of resilience.

• Due diligence discounts: Weak controls can reduce acquisition value, as buyers price in the cost of remediation and added risk.
• Customer expectations: Larger enterprise clients will only work with suppliers who demonstrate mature risk management.
• Regulatory pressures: Expanding into new markets brings legal and compliance obligations.

At scale, you’re protecting not only your company but also your customers and partners. Security lapses at this stage can destroy the trust you’ve worked years to build.

The Growth Years: Investor Confidence

Early growth is often funded by external capital. Seed and Series A/B investors don’t just care about your product - they care about their reputation and return.

• Protecting value: A breach that compromises IP or erodes customer trust can wipe out business value overnight.
• Safeguarding reputation: Investors won’t want to explain to their backers why they funded a security-weak startup.
• Future exits: Laying strong foundations early boosts divestment value.

Even if you’re scaling without outside capital, the principle is the same: security protects shareholder value.

Early Years: Building Good Habits

In the first months, security may feel burdensome and unnecessary. Why spend resources on controls when speed is everything? The answer: habits and foundations.

• Easier to set now: It’s far less painful to establish good practices early than to strip away bad ones later.
• Resistance to change: If developers install any apps they need or want on personal devices, reversing that a year later will spark resistance. If files are accessible from anywhere without controls, tightening them later creates frustration.
• Secure by design: Decades of experience show that retrofitting security is harder, slower, and more expensive than designing with it in mind.

Even lightweight governance - basic access controls, device management, and simple policies - can set you up for smoother growth and less risk.

Conclusion: Start Today, Scale Safely

No startup is too small to be a target. Cybercriminals don’t discriminate, and the cost of waiting is steep. The right question isn’t if you should act, but how much is enough at this stage and your budget.

Security, like every other business process, should evolve with growth. Strong foundations make it easier to build and scale, while neglect creates growing pains that force painful and expensive rebuilds later.

Investing early in pragmatic, phased cybersecurity ensures your business can grow with confidence - and it protects the customers, investors, and markets you depend on.

If you would like to discuss any of these topics further, you can reach out to Tom Burton, Partner for Cyber Security at Cambridge Management Consulting, here: https://www.cambridgemc.com/people/tom-burton