Why? Because they’re often easier targets.
They store valuable customer data, run complex systems, and frequently lack the robust defenses that large enterprises invest in. According to Verizon’s 2024 Data Breach Investigations Report, 61% of SMBs experienced a cyberattack in the past year, and over 40% of those never recovered financially.
At Sea Change Advisors, we’ve seen firsthand how a single breach can derail operations, destroy customer trust, and tank valuations, especially for startups preparing to raise capital or exit. In this post, we break down the rising threat landscape for SMBs and offer practical strategies to protect your business.
Cybercriminals have evolved. They're not just targeting big banks and governments, they’re looking for easy wins with fast payouts. That makes small businesses, especially SaaS startups with digital infrastructure, tempting targets.
Even startups with fewer than 50 employees are seeing attacks, especially if they store:
Cyberattacks aren’t just an IT issue, they’re an existential threat. Consider the ripple effects:
A breach right before a fundraising round or acquisition can cost you the deal—or severely lower your negotiating power.
You don’t need a 50-person security team to protect your company. Start with these practical, high-impact steps:
Require MFA across all systems, especially for email, cloud platforms (Google Workspace, AWS, Azure), and admin dashboards.
Evaluate what systems are most vulnerable, where data lives, and who has access. Tools like Vanta, Drata, or even an external audit partner can help.
Human error is still the #1 cause of breaches. Conduct regular security awareness training and phishing simulations.
Eliminate shared passwords on spreadsheets. Tools like 1Password or LastPass help teams manage secure logins with minimal friction.
Ensure all sensitive data is encrypted—both on your servers and when sent over networks.
Set up automated, secure backups of all critical data and test your restore procedures. This is your insurance policy in a ransomware attack.
For SMBs handling sensitive data, cyber insurance isn’t a luxury, it’s a smart investment. Make sure your policy covers ransomware, legal costs, and customer notification expenses.
Sophisticated investors and acquirers now require cybersecurity documentation as part of due diligence. Expect to provide:
Lack of documentation can trigger deal slowdowns, valuation reductions, or outright disqualification.
Cybersecurity isn’t just about protection—it’s about resilience and reputation. A secure company operates with more confidence, earns customer trust, and commands better valuations.
At Sea Change Advisors, we work with founders and executives to operationalize cybersecurity as part of a broader growth and investment readiness strategy. Whether you're preparing for a capital raise, expanding your SaaS infrastructure, or managing vendor risk—we can help you align security with scale.
Worried about your cybersecurity posture?
Let’s conduct a quick assessment and put a protection plan in place.
Contact Sea Change Advisors to get started.