Cybersecurity for startups – Best practices and tips

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Startups are innovation engines, but their agility and rapid growth make them prime targets for cyberattacks. Without the right defenses, a single breach can compromise sensitive data, derail operations, and damage trust with customers and investors. This article brings strategic and actionable measures designed to protect the digital assets, operations, and reputation of early-stage and growth-stage businesses from cyber threats.

Implementing these practices early helps startups safeguard sensitive data, comply with regulatory requirements, and build trust with customers and investors. By prioritizing security from the beginning, startups can confidently focus on innovation and scaling, knowing their foundational systems are protected.

We’ve compiled a list of essential cybersecurity practices designed specifically for startups and fast-growing businesses. These are practical, proven measures to help you safeguard your digital assets, protect critical operations, and reduce your attack surface.

If you’re ready to take a smarter approach to security, dive in and see how these strategies can strengthen your defenses from day one.

Cybersecurity essentials for startups

In a nutshell:

1. Know and secure your attack surface

Your attack surface includes all the digital assets that could be exploited by attackers, from web applications and APIs to cloud services and employee devices. Managing this effectively requires a clear understanding of what assets you have and how they’re connected. Startups often struggle here because new systems and integrations are added rapidly, sometimes without centralized oversight. Using automated tools to discover and map assets helps maintain visibility. For instance, monitoring tools can alert you when a new server is exposed or an unexpected change occurs in your security infrastructure.

Regularly pruning unused or outdated systems is equally critical, as these are frequent entry points for attackers. A streamlined, well-documented inventory of your attack surface reduces risks and keeps defenses manageable.

Steps to take:

  • Use tools to scan your external attack surface for exposed servers and services. If you have a budget, Censys or Shodan can be a good start, but open-source alternatives such as masscan, reNgine, etc. can replicate some of their functionalities.
  • If you have a good security budget, using an external attack surface management solution such as Assetnote or watchTowr can yield even better results. If you have a shoestring budget but development capabilities, you may be able to create internal tooling leveraging ProjectDiscovery to achieve some of the same goals. Hakluke has written a blog post describing the usage of open-source tools that help you recreate some of the capabilities of an ASM tool using open-source software.
  • Maintain a centralized inventory of all assets, including their owners, purpose, and access levels. You can’t defend what you don’t know you have in your network.
  • Conduct regular reviews to identify unused or unpatched systems and decommission or update them.
  • Set up alerts for changes in your cloud configurations using platforms like AWS GuardDuty or Azure Security Center.

2. Prioritize threat modeling

Threat modeling helps you focus your resources on the most significant risks to your business. It begins with identifying what you need to protect – customer data, intellectual property, or operational infrastructure. Once you understand what’s most critical, you can think about who might want to attack it and how they’d do it. For example, a phishing email targeting your employees could lead to stolen credentials, or an unpatched vulnerability in your software could allow unauthorized access. By mapping out these scenarios, the threat actors and the existing threat profile for your organization, you can spot gaps in your defenses and address them before they’re exploited.

Incorporating threat detection tools into your threat model provides ongoing insights into active risks and ensures you can adapt as threats evolve.

Steps to take:

  • Create a list of critical assets and assign them a risk score based on their importance and potential impact.
  • Map out potential attack paths using free threat modeling tools like OWASP Threat Dragon or the Microsoft Threat Modeling Tool.
  • Identify gaps in your defenses and prioritize fixes for high-risk areas that attackers will most likely exploit.
  • Review and update your threat model every quarter or after major changes to your infrastructure.
  • If you lack the bandwidth or expertise to conduct threat modeling internally, you can rely on LLMs such as ChatGPT or Claude. They do a very good job of reviewing basic security designs.

3. Implement strong access controls and the principle of least privilege

Controlling who can access your systems and data is fundamental to cybersecurity. The principle of least privilege is a good rule of thumb – employees should only have access to what they need for their work. For instance, a junior developer working on front-end design doesn’t need administrative rights to your backend database. Adding layers like strong multi-factor authentication (e.g., U2F FIDO keys) for critical systems makes it harder for attackers to gain access, even if passwords are compromised.

Role-based access control (RBAC) simplifies permission management by assigning predefined access levels based on job functions. This makes it easier to audit and adjust access as roles change. Regularly reviewing these permissions prevents people from accumulating access they no longer need, reducing the chances of accidental or intentional misuse.

These measures also strengthen network security by limiting unauthorized internal movement within your systems. Regularly reviewing permissions prevents people from accumulating access they no longer need, reducing the chances of accidental or intentional misuse.

Steps to take:

  • Set up 2FA on all accounts, prioritizing administrative and high-risk systems. Ensure usage of phishing-resistant U2F FIDO keys.
  • Use tools like Okta or Azure Active Directory to manage and enforce role-based access controls.
  • Schedule regular audits of user permissions to identify and remove unnecessary access.
  • Monitor access logs regularly for unusual activity, such as failed login attempts or unauthorized access.

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4. Strengthen security with SIEM and EDR solutions

Security Information and Event Management (SIEM) and Endpoint Detection and Response (EDR) tools are vital for detecting and responding to threats in real-time. For organizations with a budget, Microsoft Sentinel, CrowdStrike, or SentinelOne provide advanced features like AI-driven threat detection, automated response, and comprehensive analytics.

Wazuh is an excellent open-source alternative for cost-effectiveness. It offers log management, file integrity monitoring, and intrusion detection in one platform.

If you want this “done for you” and have a good budget, you use an MSSP that offers managed detection and response (MDR) services.

Steps to take:

  • Employ robust cloud-based security monitoring and automation.
  • Regularly update detection rules and set up alerts for unusual activity.

With the right tools, you can enhance visibility across your network and endpoints, enabling faster threat detection and response.

5. Secure software development

For startups building software, security must be embedded into the development process. Secure coding practices, such as avoiding hardcoding credentials and validating all inputs, help prevent common vulnerabilities like SQL injection, IDORs and cross-site scripting (XSS).

Regular security-oriented code reviews are essential, allowing your team to spot flaws early. Automating security tests within your CI/CD pipeline (also known as DevSecOps) ensures vulnerabilities are identified and addressed as part of the development workflow, reducing the risk of shipping insecure code. It’s also vital to monitor third-party libraries and dependencies, which are often a source of hidden vulnerabilities. Keeping these updated ensures your software isn’t relying on outdated, insecure components.

Steps to take:

  • Train developers on secure coding practices and common vulnerabilities using the OWASP Top 10 as a guide.
  • Set up automated tools like Snyk or Checkmarx to scan for vulnerabilities during code builds.
  • Conduct manual peer reviews for critical code sections, focusing on authentication, authorization, and encryption.
  • Keep dependencies updated by automating version checks with tools like Dependabot.

6. Conduct regular penetration testing and vulnerability scanning

No system is ever perfectly secure, so testing your defenses regularly is so important. Vulnerability scanning helps you identify known system weaknesses, such as misconfigured servers or outdated software. These scans should be done frequently, especially after significant changes to your infrastructure.

Penetration testing, however, involves simulating real-world cyber attacks to uncover deeper issues that automated tools might miss. This might include chaining together multiple vulnerabilities or exploiting business logic flaws.

Penetration testing assessments improve security posture and are often required to comply with standards like SOC 2, ISO 27001, PCI DSS, HIPAA or GDPR. Addressing the issues found in these assessments should be prioritized based on the severity and potential impact of each vulnerability. A well-defined security operations plan should also be in place to track vulnerabilities and ensure timely remediation.

Steps to take:

  • Run vulnerability scans monthly and after significant updates to identify new risks.
  • Schedule penetration tests annually or more often for high-risk applications or environments.
  • Use penetration testing reports to create a prioritized remediation plan, starting with critical issues.
  • Track remediation progress and validate fixes through retesting by your security team or an external provider.

7. Backup and data encryption

Data is the lifeblood of most startups, so protecting it from loss or theft is non-negotiable. A solid backup strategy follows the 3-2-1 rule: maintain three copies of your data, store them on at least two different types of media, and keep one copy offsite if you can. Automation simplifies the process, ensuring backups happen consistently without human intervention.

Equally important is testing your backups regularly to ensure they can be restored when needed.

Encryption adds another layer of protection for data stored on your systems and data transmitted over the Internet. Using strong encryption standards like AES-256, even if attackers intercept your data, they won’t be able to read it. Properly managing encryption keys is critical – losing or exposing a key can render encryption useless.

Steps to take:

  • Set up automated daily or weekly backups for critical systems using tools like Veeam, AWS Backup, or Azure Recovery Services.
  • Test your backups regularly by performing mock restorations to ensure data integrity and recoverability.
  • Encrypt all sensitive data at rest using AES-256 and ensure that encryption for data in transit uses TLS 1.2 or higher and that your ciphers are strong, with an A+ score on SSL Labs.
  • Securely store and manage encryption keys using dedicated key management solutions, such as AWS Key Management Service (KMS) or HashiCorp Vault.

8. Educate your team

The best security measures can be undermined by human error, which is why education is so important. Regular training sessions help employees recognize threats like phishing attempts and understand how to handle sensitive information securely. Simulated phishing campaigns can effectively build awareness, allowing you to identify gaps in understanding and address them in real-time. Security policies should be clear and accessible, outlining how to report suspicious activity and what’s expected regarding data protection. Tailoring training to different roles ensures it’s relevant and actionable—for example, developers might focus on secure coding, while administrative staff learn about document handling.

Steps to take:

  • Provide mandatory onboarding security training for all employees, focusing on identifying phishing attacks, creating strong passwords, and reporting incidents.
  • Conduct regular simulated phishing campaigns to test employee awareness. If necessary, follow up with immediate feedback and refresher training.
  • Distribute clear and concise security policies that outline expected behavior, reporting procedures, and best practices.
  • Organize role-specific training for teams like developers, HR, and IT to ensure the training is relevant and practical for their responsibilities.

9. Consider using Chromebooks

Chromebooks offer several built-in security advantages that make them a good choice for startups. They automatically update their operating system, ensuring devices always run the latest patches. Sandboxing isolates applications from one another, minimizing the impact of malware. Verified boot ensures the system hasn’t been tampered with by checking the integrity of critical files each time the device starts.

Because Chromebooks are heavily cloud-based, they reduce the risks associated with local storage, such as theft or device loss. These features make Chromebooks an easy way to improve security without requiring significant effort or expertise.

Bob Lord, the former CISO of the DNC, pushed hard for Chromebooks in the US 2020 election to prevent similar hacks to those that occurred in 2016.

10. Physical security and its role in cybersecurity for startups

Physical security is often overlooked in cybersecurity discussions, but it plays a critical role, especially for startups handling sensitive data or operating in sectors like fintech, healthcare, or technology development. The ISO 27001 framework even has an entire section dedicated to it.

With return-to-office mandates being a topic in 2024 and possibly in the foreseeable future, unauthorized physical access to your office, servers, or devices can lead to security breaches just as damaging as cyberattacks. For example, an intruder could steal devices, plant malicious hardware, or access confidential information left unsecured.

Steps to take:

  • Secure your premises with access controls such as keycards, biometric systems, or PIN-based entry for areas with sensitive equipment or data.
  • Ensure all employees lock their screens when stepping away from devices and store sensitive documents in locked cabinets.
  • Implement visitor management policies, such as logging all guests and requiring escorts for non-employees.
  • Security cameras monitor high-risk areas like server rooms and device storage locations.
  • Educate your team on the importance of securing laptops, USB drives, and other portable devices, both inside and outside the office.

By addressing physical security, startups can reduce the risk of theft, tampering, or unauthorized access that could compromise their cybersecurity posture.

How much should startups spend on cybersecurity?

While there’s no one-size-fits-all answer, a common recommendation is to allocate 5-10% of your overall IT budget to cybersecurity, scaling up as your startup grows or operates in highly regulated industries like finance or healthcare.

Obviously, startups don’t have the resources of enterprise security teams, which is why they need to focus on smart, cost-effective strategies to address the biggest risks. The key is balancing risk and resources—spend enough to address your most critical vulnerabilities without overinvesting in tools or services you don’t yet need.

  • Start with the basics: prioritize affordable, high-impact solutions like firewalls, endpoint protection software, and multi-factor authentication (MFA).
  • Invest in tools that grow with you, such as scalable cloud security platforms or subscription-based services.
  • Set aside funds for annual penetration testing and compliance-related security audits if your industry requires them.
  • Consider the cost of not investing in cybersecurity—data breaches can result in losses far exceeding upfront investments in prevention.
  • Regularly revisit your budget as your startup evolves, ensuring it aligns with your increasing security needs and risks.

Conclusion

Building cybersecurity into your startup from the beginning creates a foundation for sustainable growth. By securing your assets, managing cybersecurity risks, and fostering a culture of security, you’ll not only protect your business but also build trust with customers and partners. Start small but stay consistent, adapting your approach as your startup evolves.

Remember to:

  • Start with a basic security roadmap that includes short-term priorities like asset inventory and access controls alongside long-term goals such as penetration testing and advanced threat monitoring.
  • Regularly evaluate your cybersecurity posture and adapt your cybersecurity strategy as your startup grows and integrates new technologies.
  • Invest in cybersecurity awareness across your team, ensuring security becomes part of your company culture at every level.
  • Collaborate with trusted cybersecurity providers or consultants when in-house expertise is insufficient to address complex risks.

About the author

Ewelina Baran

Ewelina Baran

Ewelina is a SEO copywriter specialized in technology, more specifically in cybersecurity. She holds a masters degree in English Philology from Jagiellonian University, Krakow.

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