It’s a well-known fact that the UK is an international innovation hub, and 2017 saw more investments in British start-ups than ever before (Beauhurst 2017). The majority of funding is going to startups in the latter funding stages, with the number of £50M+ megadeals also at its highest ever. This surge in funding marks a rebellion against sombre forecasts that initially predicted the ‘Brexit effect’ would be much stronger.
According to Beauhurst, investment in UK companies was up 113% YoY, with Fintech companies benefitting from the most significant growth at 198% . Transferwise, Revolut and Monzo have all risen rapidly in the rankings. Traditional banks often lack the accessibility and transparency that these challengers offer. Why should I have to go to a Bureau de Change before going on holiday? Why must I earn a six-figure salary before receiving help with my investments?
Newly emerging ‘tech’ industries offer simple customer engagement and emphasise the diversity of technology. But they also face growing pains as they prepare for the next phase of expansion. So how can these growing pains be contained to ensure minimal cash burn?
Our previous blog highlights how additional funding signals the need for a CISO, and scaleup CISOs are faced with a number of challenges:
- Compliance - are you industry compliant? Have you reviewed and met PCI/GDPR/ISO27001 requirements?
- Growth - have you built a scalable network that is ready for growth? How can you introduce a scalable and agile infrastructure and manage threats from external sources such as the dark web?
- Build a brand - customer loyalty and brand protection are so closely interwoven that any security breach or network failure can make all the difference
This may sound daunting and negative, but it shouldn’t. The UK saw the highest growth in 2017 than any other year in the startup sector history. Clearly some organisations are getting it right. But with just 2% of startups moving into the scaleup phase, it’s essential to ensure that you are in the best position to be one of them.
A scalable infrastructure and robust cybersecurity solution should be fundamentals for any scaleup. Whilst cybersecurity may be neglected in the rush to acquire new customers, in the long term it will lay the foundation to retain those customers.
Infradata has helped many companies transition to become a scaleup. In the same way that businesses scale and grow over time, so should their cybersecurity roadmap. No security solution is completely future-proof, and every organisation needs to adapt as the business and threat landscape changes. Get your cyber strategy right and your share price can rise (Facebook is a timely example of this as they have defended their stance and plans going forward). Get it wrong and it could be a very different story - just ask the 60% of small companies that go out of business after they suffer a cyber-attack (The Denver Post).
Elizabeth Hodges, Solutions Sales Consultant - April 16 2018