Feb. 16, 2022

Why do senior executives buy from early-stage cyber security startups?

Why do senior executives buy from early-stage cyber security startups?

It is definitely not for everyone!

3 reasons:-

1) they have a pressing problem that isn't solved well by a bigger player

2) they have the risk appetite (personal and company) to work with start-ups.

3) they want to be involved in the startup community... VCs, boards, advisory boards, LPs, funds, advising

Look for at least 2 of these 3 in each deal.

I once met with a CISO at a global financial company and he said he set aside a few million dollars a year in his budget to buy early-stage technology. His main drivers were 2 and 3 on the list.

I met another CISO who said that if the company didn't have 100+ customers and was in a magic quadrant, he wasn't interested. He may have had 1, but didn't have 2 or 3.

Having 1, but not 2 or 3 is the danger zone. You may go through a demo and a POC, be the clear winner, and still not get the deal. If the individual and the company are not comfortable being one of the first customers at an early-stage company, they simply won't do business with you.

Don't: go through the sales cycle hoping that at least 2 of the 3 are there.

Do: qualify early and often for 1 and 2, and hope you also have 3.

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