Cybersecurity for Startups: Important Steps for New Businesses

Building a business is exciting, but the truth is: while you're focused on growing your customer base or securing your next round of funding, cybercriminals may be eyeing your startup as their next target.

Small businesses and startups face a disproportionate share of cyberattacks because lean teams and rapidly-evolving systems can create vulnerabilities that are easy for attackers to exploit. In fact, 79% of small businesses experienced at least one cyber attack in the last five years. The reality is stark: one successful cyberattack could cost a startup anywhere from $120,000 up to $1.24 million, enough to possibly shut down a new business before it ever gets off the ground.

The good news: by enabling proper security controls from day one, companies can embed cybersecurity into their culture, build customer trust and scale more confidently.

Why Startups Get Targeted by Cybercrime

Cyber attackers tend to gravitate toward environments where defenses appear weak and data is abundant. For early-stage companies, that can mean:

• Limited cybersecurity resources: No dedicated cybersecurity function, minimal monitoring, and a “we’ll fix it later” mindset.
• Valuable data with limited protection: Customer records, proprietary code, early financials are high-value targets which may require more than basic controls.
• Human error: Founders and early employees wear many hats. Human error contributed to  95% of cybersecurity incidents in 2024, and for startups, security training may lag behind tooling and roadmap.
• Growth at all costs: Pursuing product-market fit, fundraising, and shipping features may draw attention away from governance and risk management.

Some of the Biggest Cyber Threats to Watch

• Phishing: These are convincing messages that trick someone into sharing credentials or running malware. One compromised account can reach code, cloud, billing and more.
• Ransomware: Smaller teams are often targeted because backups may be untested and access controls are minimal. Ransom payments are only part of the cost; recovery and downtime due to ransomware can amplify the overall impact.
• Password and identity issues: 74% of successful data breaches involve the human element. Weak, reused, or shared passwords as well as inconsistent offboarding can create easy entry and lateral movement.
• Malware and data theft:  Without endpoint protection and centralized logging, startups may not be able to detect malware infections until significant damage has happened. Malware accounts for 30% of cyberattacks on small businesses.

9 Important Cybersecurity Steps for Startups

Don't wait until your company grows to get serious about security. Here's a step-by-step roadmap designed to help startups build a strong cybersecurity foundation:

Step 1: Run a lightweight risk assessment


Start simple. List your critical assets and flows.  For example:

• Devices: laptops, phones, any servers
• Cloud and apps: email, storage, code hosting, CI/CD, finance
• Data: customer information, payment data, proprietary code, contracts
• Network edges: office routers, VPNs, remote access

Now pressure-test a few questions:

• Which systems would shut down your business if compromised?
• What data would be most valuable to criminals or competitors?
• Where are your team members most likely to make security mistakes?

Use simple frameworks, like CIS Controls or the NIST CSF, to help structure priorities and ensure coverage across identity, devices, data, applications, and response. *These links direct to third party websites; we do not control the content and are not responsible for its accuracy or completeness.

Step 2: Lock down identity (MFA + passwords + access)

• Turn on MFA everywhere that matters: email, cloud admin, code repos, billing, finance, and any dashboard with customer data.
• Standardize a password manager: Unique, long credentials (passphrases) by default and utilize cloud-based tools for password management ; do not share via chat or email.
• Apply least privilege: Access should match the job, nothing more. Review permissions regularly and quickly revoke during offboarding.

Step 3: Harden devices and patching

• Auto-update operating systems, browsers, and apps.
• Use reputable Anti-virus or Endpoint Detection & Response tools on every laptop and server. It can catch malware precursors and suspicious behavior.
• Encrypt drives and enable remote wipe on all company devices, including founder and contractor laptops.

Step 4: Create backups that you can restore

• Implement the 3-2-1 backup rule: Keep 3 copies of important data, on 2 different media types, with 1 copy stored offsite or in the cloud.
• Test restores on a schedule. If you never test your backup you are just hoping for the best.
• Protect backups from tampering. Limit who can delete or reconfigure them.

Step 5: Secure cloud and data from the start

Configure cloud security properly:

• Enable logging and monitoring for all cloud services
• Implement strong identity and access management
• Encrypt data both in transit and at rest
• Regularly review and remove unnecessary access permissions

Step 6: Train people (brief, practical, recurring)

Remember, Human error has contributed to 95% of security incidents.

• Use phishing email simulations on your team, then provide immediate training when someone clicks.

Establish clear security policies, including:

• Guidelines for creating and managing passphrases
• Rules for using personal devices for work
• Procedures for reporting suspicious emails or activities
• Protocols for secure data handling and storage

Create a security-conscious culture. Make cybersecurity everyone's responsibility, not just the IT person's job. Encourage reporting of potential threats without fear of punishment.

Step 7: Manage vendor risk

• Inventory key vendors and what they can access. Confirm they use MFA, patch quickly, and have an incident response plan in place.
• Limit access by role and revoke tokens when a project ends or employees leave.
• Put expectations, defined responsibilities and performance standards in contracts. It can clarify responsibilities and accountability when speed matters.

Step 8: Prepare to respond

Create an incident response plan that includes:

• Clear responsibilities: Who leads, who approves, and who communicates internally and externally.
• How to contain (isolate devices, suspend accounts), how to preserve evidence, how to escalate.
• Pre-stage contacts: legal, insurance, forensics, cloud support, PR. Run a tabletop so the first test isn’t the real thing.

Step 9: Consider Cyber Insurance

Cyber insurance can help provide crucial financial protection in the event of a cybersecurity claim, but it should not be viewed as a substitute for good security practices. Many insurance policies require certain security measures to be in place before covering a claim.

When considering cyber insurance options:

• Understand the terms and conditions of each policy: what's covered (and what's not)
• Know the requirements for maintaining coverage
• Work with agents who understand startup needs and budgets to help you find the right policy

Note: This roadmap is provided for general informational purposes only. Specific cybersecurity needs may vary depending on your business and you should always consult a qualified cybersecurity professional before making decisions or implementing controls.

Building Security Without Breaking Your Budget

Look, we get it. You're watching every dollar, and cybersecurity can seem like an expensive luxury. But here's the reality: the cost of prevention is always less than the cost of recovery.

Start with practical, budget-friendly measures:

• Many cloud services include built-in security features
• Password managers and MFA tools may be available in free tiers or included in software you already have
• Leverage open-source security monitoring tools, where possible
• Take advantage of available government resources and training materials

Prioritize based on risk: 

Focus your limited budget on protecting your most critical assets first (for example, the customer database).

Consider outsourcing: 

Many small businesses outsource their IT Department to managed security service providers as this can often be more cost-effective than trying to handle everything in-house.

Don’t wait for “later”

Successful companies treat security like an integral part of how the business earns and keeps trust.

Consider exploring cybersecurity solutions with professionals from Acrisure Cyber Services who understand your business’s unique needs and budget.  

Let's talk about how we can help you create a cybersecurity foundation that helps protect your startup while supporting your growth goals. Reach out to [email protected] or visit Acrisure.com/cyber for a no-obligation consultation tailored specifically to startup needs and budgets.