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Cyber ​​Risk Report 2022: How Founders Are Treating Cyber ​​Security in Today’s Climate |

Just how big a deal is cybersecurity anyway? It’s no secret that founders have a lot of work to do. VC is no longer cutting large checks. We are in the middle of a recession and the pandemic hangover is creating operational difficulties across the board. We surveyed over 400 VC-backed startups to find out how they are coping with the current economic headwinds and how concerned they are about their security. Cyber ​​Security Report: Startup Edition.

Cybersecurity Concerns Are Growing

Specifically, the survey results reveal that more than two-thirds (68%) of founders have experienced a cyberattack on one of their businesses. This probably explains why the majority of founders (86%) said they have some form of cyber insurance protection. But even with policies in place, 71% say they are considering additional cyber protections and tools for his 2023.

Cybersecurity concerns are on the rise among founders, with concerns about cybersecurity threats increasing by nearly a third (31%) from a year ago. In fact, 14% more founders believe they will be attacked this time last year (up from 36% in 2021 to 50% in 2022).

Social impact drives decision making

The high proportion of startups with cyber insurance may be partly due to pressure from investors and board members. Nearly half (49%) cite cybersecurity insurance protection as required by one or both of these entities. However, it’s not just internal factors that drive founders to reassess cyber risk. Founders report that external factors such as global events have a noticeable impact. When purchasing cyber insurance, founders were concerned about (a.) tensions over diplomatic relations (40%), (b.) media coverage of other companies’ data breaches (35%), and (c.) managing hybrids. said to be most motivated. /remote workers (32%).

We’ve actually seen this roll out with our own customers. Shortly after the war started in Ukraine, we saw a 50% increase in cyber policy filings. It also shows you exactly how current events are driving business decisions in real time. With more media coverage of the war between Russia and Ukraine, it makes sense that the founders were concerned about possible retaliatory cyberattacks from Russia against US infrastructure and businesses.

Laptop monitor showing green verification checkmark indicating insurance for unfunded tech e&o startups

Are Cyber ​​Risks Increasing?

Read the 2022 Cyber ​​Risk Index report to find out what businesses care about, how they protect themselves, and what the future holds.

Download report

Startups take cyber insurance seriously

Most startups have adequate cyber insurance, but it’s unclear how much risk is actually covered. More than 52% of founders (86%) who said their company has cyber insurance said their insurance type was either ‘tailored to their needs’ or ‘most comprehensive’ package It is said that However, half of startups with cyber insurance say their current policies only partially cover the risk in the event of an attack or breach. Additionally, cost (44%) was the top reason cited by those surveyed who do not have cyber insurance. (Does this sound like you? our team can help Find cyber insurance at a cost that suits your business).

Looking ahead to 2023 and beyond

Looking ahead to 2023, founders are most concerned about the impact of inflation (32%), cyberattacks (27%) and supply chain challenges (26%). This represents a change from the beginning of the us Startup Risk Index Report In a survey conducted in February 2022, founders named inflation, supply chain issues and competition as their top three concerns. At the time, cybersecurity was not ranked.

But now, the top three “non-negotiable investment areas” for next year are product innovation (32%), cybersecurity protection (31%), and equipment upgrades (30%). This confirms how focused the founders are on better securing and enhancing the company’s infrastructure and equipment.

To learn more about how the founders treat cyber protection in their business, Cyber ​​Security Report: Startup Edition.

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