Cybersecurity for Startups

Cybersecurity for Startups - 10 Tips and Best Practices

Startups are innovators, but they’re also big targets for cyberattacks due to their rapid growth and nimbleness. A single leak could expose sensitive data and disrupt operations, as well as destroy the trust of customers and investors. This post provides tactical and strategic cybersecurity tips for startups on how to defend their digital assets, operations, and brand image from cyber attacks.

Startups can benefit from adopting these measures early on, keeping data like the above secure and compliant. It’s also an opportunity to win the trust of investors and customers. Favoring security beginning creates an environment where startups can innovate and expand, knowing their systems are secure.

We’ve compiled a list of critical cybersecurity practices for startups and businesses experiencing rapid growth. These are practical and efficient measures that will help you protect your digital assets, secure essential operations, shrink the surface of attack, and protect your digital assets.

If you are ready to be smarter, you can begin to secure your environment today.

Key Takeaways

• To startups, cybersecurity must be one of the core business considerations that safeguard data, operations, and trust from Day One.
• If I wanted to reduce risk, first know my attack surface and perform threat modeling, then put up strict access controls with the principles of least-privilege and multi-factor authentication.
• The proactive monitoring (SIEM/EDR), secure software development, and frequent testing can detect and prevent threats before they escalate.
• A combination of encryption, good backups, disaster recovery planning, and educating employees about security can safeguard an organization from technical and human threats.
• Good startup security is about smart, scalable investments—prioritizing high-impact controls that scale with the business--managing budget and risk.

Cybersecurity Essentials for Startups

1. Secure your attack surface

And there are all sorts of digital assets that can be attacked — web apps, api services, cloud tools, employee devices. In order to do this well, you need to know what assets are out there and how they relate. This is difficult for start-ups, which pile in new systems and integrate them rapidly, often without central supervision. Automated programs that find and map assets help maintain visibility. Monitoring tools, for instance, can notify you if a server is on the open internet or if the state of your security infrastructure has changed.

Near all dead or unused systems should be routinely and religiously should also be pruned, as these appear to be popular inroads for the attacking scum. A well-documented, organized list of your attack surfaces mitigates risk and assists in the management of defense.

Steps to follow:

• Scan your external attack surface to find exposed servers and services. Censys and Shodan are good options if you're on a budget. However, there are also open-source solutions such as reNgine or masscan. Some of their functionality can be replicated.
• You can achieve even better results if you have an adequate budget for security. You may be able, if you are on a tight budget but have the development skills to do so, to create an internal tool that leverages ProjectDiscovery in order to achieve similar goals. 
• Keep a central inventory of all assets. Include their owners, purposes, and levels of access. You cannot defend anything you do not know is in your network.
• Regularly review your systems to identify those that are unused or not patched and update or decommission them.
• Use platforms such as AWS GuardDuty and Azure Security Center to set up alerts when your cloud configuration changes.

2. Prioritize threat modeling

Threat modeling allows you to concentrate your efforts on the risk that matters most, done right, and it will get ugly if exposed. The most important first step is to figure out what you’re trying to protect, be it customer data, intellectual property, or your operation’s infrastructure. Once you’ve determined what is most valuable, try to brainstorm who might attack that information and how. An email attack targeting your workers might result in stolen passwords, or an unpatched hole in some of your software may give a bad guy access. You can use these to think about any holes in your current threat model.

The threat model should include tools for threat detection to provide ongoing insight into active risks. This will allow you to adapt as threats change.

What to do:

• List critical assets, and give them a score for risk based on importance and impact.
• Use a free tool for threat modeling, such as OWASP Threat Dragon and the Microsoft Threat Modeling Tool, to map out possible attack paths.
• Find the weak points in your security and fix them first.
• Update your threat model quarterly, or whenever you make major changes to your infrastructure.
• You can use large language models such as ChatGPT and Claude if you don't have the time or expertise to do threat modeling in-house. They are very effective at reviewing basic security designs.

3. Use strict access controls and the least privilege principle

Cybersecurity is based on the principle of controlling who has access to your systems and data. Employees should only be able to access what they need to do their jobs. A junior designer working on the front-end doesn't require administrative rights to the backend database. Adding layers to critical systems, such as multi-factor authentication (e.g., U2F FIDO key), makes it more difficult for hackers to gain access even if the passwords have been compromised.

The role-based access control system (RBAC), simplifies permission management through the assignment of predefined access levels according to job functions. It is easier to audit access and make adjustments as roles change. By regularly reviewing permissions, you can prevent people from accumulating more access than they need. This reduces the risk of accidental or deliberate misuse.

This will also improve network security, as it will limit unauthorized movement inside your system.

Steps to follow:

• Prioritize administrative and high-risk accounts when setting up 2FA. Use phishing resistant U2F FIDO key.
• Manage and enforce role-based security using tools such as Okta, Azure Active Directory, or Azure Active Directory.
• Audit user permissions regularly to remove any unnecessary access.
• Regularly check access logs for unusual activities, such as failed attempts to log in or unauthorized access.

4. Enhance security with SIEM and EDR Solutions

Threats need to be found and reacted to in real time; security information and event management (SIEM) tools, endpoint detection & response (EDR) tools are key. For organizations with the budget, Microsoft Sentinel or SentinelOne are two of the best choices. Some of them provide higher-end features such as threat detection by AI, automated actions taken against threats, and deep analysis.

Wazuh offers a cost-effective alternative to commercial software. It offers log monitoring, file integrity monitoring, and intrusion detection in one platform.

If you have the budget and want to "have it done for you", you can use an MSSP that offers managed detection and response (MDR) service.

Steps to follow:

• Automate and monitor security using cloud-based monitoring.
• Set up alerts for unusual activity and regularly update your detection rules.

You can improve visibility of your network, endpoints, and threats with the right tools. This will enable faster detection and response to threats.

5. Secure software development

For startups, security should be integrated into the application development process. The use of secure coding techniques, such as avoiding hardcoding user credentials and performing input validation, will go a long way to protect you from well-known vulnerabilities such as SQL injection, IDORs, and XSS.

We need to have regular code review sessions that focus solely on security. This way, your team members won’t have to wait for months to find a bug. You can automatically run security tests in your CI/CD workflow, which we also call this as DevSecOps, to detect vulnerabilities early and fix them as part of the development workflow. This helps to minimize your chance of shipping insecure code. Third-party libraries/dependencies. Third parties (other developers and suppliers) are also important attack vectors to monitor, because they can bring hidden vulnerabilities. By maintaining these parts up to date, you can make sure that your software isn't relying on outdated and insecure components.

Steps to follow:

• Using the OWASP top 10 as a reference, train developers in secure coding and common vulnerabilities.
• Use automated tools such as Snyk and Checkmarx to check for vulnerabilities when building code.
• Perform manual peer reviews of critical code sections focusing on encryption, authentication, and authorization.
• Automate the version check of dependencies using tools such as Dependabot.

6. Regularly perform penetration tests and vulnerability scans

You must also regularly test your defenses. Scanning for vulnerabilities allows you to discover issues with your systems, like old software or misconfigured servers. These scans should be conducted regularly, especially after you've made significant updates to your infrastructure.

In contrast, penetration testing involves simulating actual cyber attacks in order to discover deeper issues that automated tools may miss. It could involve exploiting multiple vulnerabilities or business logic flaws.

Penetration testing reviews help bolster your security posture and may be required to satisfy standards like SOC 2, ISO 27001, or HIPAA. The outlines of a response prioritisation process based on the severity and impact of issues identified during these assessments are proposed. A good security operation plan must be available to monitor vulnerabilities and counter them in a timely fashion.

What to do:

• Perform vulnerability scans at least once a month and whenever there are significant updates.
• Conduct penetration tests at least once a year or more frequently for applications or environments with high risk.
• Use reports of penetration testing in order to prioritize remediation plans, starting with the most critical issues.
• You can track remediation progress by retesting your fixes with the help of an external security provider or team.

Companies with agile development processes may find that penetration testing as a service ( PTaaS), which keeps pace with DevOps, is a better alternative. It integrates seamlessly with existing workflows.

7. Data encryption and backup

Protecting data from theft or loss is a must for most startups. The 3-2-1 rule is a good guideline for a solid backup strategy: keep three copies of all your data on two different media types, and if possible, keep one offsite. Automation makes the process easier and ensures that backups are done consistently, without any human intervention.

It is also important to test your backups regularly in order to make sure they can be restored if needed.

Data stored on your system and data sent over the Internet are protected by encryption. Even if an attacker intercepts your data using AES-256 encryption, they will not be able read it. It is important to manage encryption keys properly - losing or exposing an encryption key can render encryption ineffective.

What to do:

• Use Veeam Backup, AWS Back-Up, or Azure Recovery Services to automate daily or weekly backups of critical systems.
• To ensure data integrity, perform mock restores on your backups.
• SSL Labs recommends that you encrypt sensitive data using AES-256, and that data transmitted via TLS 1.2 and higher be encrypted. Your ciphers should also score A+ on SSL Labs.
• Use dedicated key management services, such as AWS Key Management Service or HashiCorp Vault, to securely store and manage encryption keys.

8. Your team should be educated

Education is important because even the best security measures are susceptible to human error. Regular training sessions enable employees to recognize threats such as phishing and learn how to handle sensitive data securely. A simulated phishing campaign can be used to build awareness. This allows you to identify any gaps and correct them immediately. Security policies must be clear and easily accessible. They should explain how to report suspicious activities and what data protection expectations you have. Training should be tailored to the role of each employee. For example, developers may focus on secure coding while administrative staff might learn about document handling.

What to do:

• All employees should receive mandatory security training during their onboarding. This includes identifying phishing, creating strong passwords, and reporting incidents.
• Test employee awareness with regular simulations of phishing campaigns. Follow up with immediate feedback or refresher training if necessary.
• Distribute security policies that are concise and clear, and outline the expected behavior, reporting procedure, and best practices.
• Organise specific training for certain teams, such as developers, HR, and IT, to ensure that the training is practical and relevant for their roles.

9. Consider using Chromebooks

Chromebooks have several security features that make them an excellent choice for startups. The operating system is automatically updated, so devices are always running the latest patches. Sandboxing isolates apps from each other, minimising the impact of malware. Verified boot checks the integrity of important files every time the device is started to ensure that the system has not been tampered with.

Chromebooks, which are heavily cloud-based reduces the risk of theft and device loss. Chromebooks are a great way to increase security without having to spend a lot of time or effort.

Bob Lord, former CISO at the DNC, pushed for Chromebooks to be used in the US election 2020 to prevent hacks similar to the ones that happened in 2016.

10. Cybersecurity and physical security for startups

The importance of physical security in cybersecurity is often underestimated. However, it's crucial, especially for startups that handle sensitive data or operate in industries such as fintech or healthcare. ISO 27001 has a whole section devoted to physical security.

Unauthorized physical access to devices, servers, or offices can cause security breaches that are just as damaging as a cyberattack. Intruders could, for example, steal devices, install malicious hardware, or access confidential data left unprotected.

Steps to follow:

• Access control systems such as biometric systems or keycards can be used to secure sensitive areas or equipment.
• Lock screens on all devices when employees step away. Store sensitive documents in locked cabinets.
• Implement visitor management policies such as logging guests and requiring non-employees to be escorted.
• Cameras monitor areas at high risk, such as server rooms and storage locations for devices.
• Inform your team about the importance of protecting laptops, USB devices, and other portable gadgets both in and out of the office.

Startups can reduce their risk of theft, tampering, or unauthorized entry by focusing on physical security.

How Much Money Should Startups Spend on Cybersecurity?

There is no one-size-fits-all answer. However, it is common to recommend allocating 5- 10% of your total IT budget towards cybersecurity. You can increase this percentage as your startup grows and operates in industries with high regulations, like finance or healthcare.

Startups don't always have the same resources as enterprise security teams. This is why they should focus on cost-effective, smart strategies to combat the most serious risks. It's important to balance risk and resources. Spend enough money to fix your most critical weaknesses, but not too much on tools or services that you may not need.

• Start with the basics. Prioritize affordable solutions that have a high impact, such as firewalls, endpoint security software, and Multi-factor Authentication (MFA).
• Invest in tools you can grow with, like subscription-based or scalable cloud services.
• As required by your industry, set aside funds to conduct annual penetration tests and security audits.
• Consider the costs of not investing in cybersecurity. Data breaches can cause losses that are far greater than the initial investments made in prevention.
• As your startup grows, you should regularly review your budget to ensure it is aligned with your growing security needs and risks.

Conclusion

By integrating cybersecurity from the start, you can create a solid foundation for your business's growth. You can protect your business and build trust by securing assets, managing cyber risks, and cultivating a security culture. Stay consistent and adapt your approach to your startup's growth.

Check our website at Sentant for more information.

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Frequently Asked Questions

1. Why are startups more vulnerable to cyberattacks than large companies?

Startups often grow quickly, deploy systems fast, and lack mature security controls, making them easier targets. Attackers know startups handle valuable data but may have weaker defenses, which is why early cybersecurity investment is critical.

2. What is the most important cybersecurity step for a startup to take first?

The priority is knowing and securing your attack surface. Inventory all systems, cloud assets, applications, and devices, then apply access controls, patching, and monitoring. You can’t protect what you don’t know exists.

3. Do startups really need advanced tools like SIEM or EDR?

Yes—modern SIEM and EDR solutions are cloud-based and scalable. They help startups detect threats early, respond faster, and reduce damage. Budget-friendly or managed options allow startups to gain strong protection without building an in-house security team.

4. How much should a startup budget for cybersecurity?

A common recommendation is 5–10% of your total IT budget. Start with high-impact controls like MFA, endpoint security, backups, and monitoring, then scale investments as your business and risk profile grow.

5. Can employee mistakes really cause serious security breaches?

Yes—phishing, weak passwords, and mishandled data are leading causes of breaches. Regular security training, clear policies, and simulated phishing exercises significantly reduce human error and strengthen your overall security posture.

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Will Pizzano, CISM is Founder of Sentant, a managed security and IT services provider that has helped dozens of companies achieve SOC 2 compliance. If you’re interested in help obtaining SOC 2 compliance, contact us.

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