Startups need to care a lot about the cyber security
A decade ago the technology strategy of an organization was only second to the business strategy. Today, the strategic technology often sets the strategy for business.
Cyber security is the number one issue for CEOs worldwide according to the World Economic Forum this year. Infringements of data not only harm the image, but also directly affect an organization's balance sheet. The best example is Yahoo. As a result of the hack, the company was depreciated by $350 million and had to settle a $4.48 billion settlement with Verizon.
Why startups should be worried about security
It would be fair to say that most entrepreneurs worldwide use software and have changed our way of doing business, dining, traveling and, more generally, our lifestyles. Businesses like Uber, Airbnb, Zomato, Coursera and many more have built their business on software and made a major impact on our lives and the world of technology. Such start-ups are at the forefront of technological innovation and gather comprehensive data to provide innovative products and services. This has brought the hacker community a lot of interest.
The hack revealed by Uber in 2018 shows clearly that start-ups have to take cybersecurity seriously. Attackers received passwords in November 2016 to access Uber's cloud servers and downloaded 16 big files, including records of 35 million users worldwide. The hackers can access passenger name information, telephone number, email address and where they registered.
Data gathered from the Zurich insurance company in 2017 showed that in the past 12 months, a cyber attack impacted 875.000 SMEs across the UK. Such cases are the tip of the iceberg and highlight the need for businesses to defend virtual interests against statistics infringement.
Key to increasing an organisation’s valuation
Ironically, in the startup community, a growing trend is to use the safety position of the Organization to cope with increased investments. Globally, investors have carried out two primary diligence steps, both legal and financial, before investing in an enterprise.
In the analysis of our portfolio most discerning investors are already looking ahead. In addition, the advanced attacks we have seen, along with the high costs of breaches (both in company and reputation), cyber security readiness and enforcement can no longer be ignored. Businesses seeking to improve corporate evaluations, time and resources are required to invest in a solid, fundamental cyber security strategy.
The road ahead
The value of a company data infringement is an increasingly important factor to be understood today. This subject is being focused more and more by researchers around the world to help policymakers and industry become more educated. According to the Ponemon Institute's annual cost of data breach, the cost per lost record for a company in the US averages $242.