Simon Chassar, former CEO of Claroty, on new cybersecurity ventures

LONDON, UK / ACCESSWIRE / September 23, 2024 / Cybercrime continues to be a major concern for businesses worldwide. Financial losses will reach a record $12.5 billion in 2023, largely due to investment fraud and business email compromise schemes, according to the latest FBI Internet Crime report.

The impact is not just financial. Victims of cybercrime often suffer reputational damage as customers lose confidence in their ability to protect sensitive data. They also face operational disruption, higher insurance premiums and potential legal repercussions.

It’s no surprise that CIOs are looking for ways to stay ahead in the ongoing battle against Black Hat hackers focused on extortion, network disruption and data theft for resale on criminal networks.

The growing threat has led to a surge in cybersecurity startups vying for a slice of the global market estimated at $100,000. $172.24 billion in 2023. This figure is expected to grow to USD 562.72 billion by 2032. The potential rewards for leadership in this space are enormous.

However, cybersecurity startups must perform at the highest levels if they want to beat established players like IBM Corporation, Microsoft Corporation, Palo Alto Network, Broadcom and others. The battle for market share is a take-no-prisoners affair, and startups face a unique set of challenges in their quest for market share.

Someone who knows these challenges all too well is Simon Chassar, former CRO of Claroty.

Chassar founded his own cybersecurity startup advisory firm after taking Claroty from a startup Series B to Series E, preparing the company for an IPO, expanding its global footprint, and surpassing $100M in annual recurring revenue (ARR) while maintaining impressive 30%+ annual growth. Chassar’s decades of experience helping cybersecurity startups formulate strategies for market dominance and achieve their funding goals makes him one of the country’s foremost thought leaders in the cyber venture sector.

Agility and overcoming challenges

Thriving in the fast-paced startup culture can be a daunting challenge, especially in the technology space. It’s a challenge made all the more daunting by the rapid evolution of cyber threats, Chassar said.

“I’ve always found the startup world incredibly exciting, but when it comes to creating breakthrough solutions, there are a lot of moving parts to the machine. And for many tech-focused founders, the complexities of taking a startup to market are terra incognita, uncharted territory — and it can be a scary place to be.”

According to Chassar, the startup machine will only deliver superior returns on investment if all its parts work in harmony to achieve a strategic goal.

“There is a lot of work that goes into raising capital or bringing a product or service to market. You have to research market needs, perform user analysis, and fine-tune the design to ensure the right market and use case fit. External partners need to be identified to ensure they share the organization’s vision.

For Chassar, careful analysis of market opportunities is often the foundation of success. He believes that building trust with customers is the first step to creating a lasting relationship, but it is only part of the challenge of building a sustainable business.

“The startup market has a lot to focus on; ensuring strong product-market fit and then commercializing licensing, regulatory approval, finding a subscription model that fits the market needs, or offering packages with upgrades and after-sales service. The key is to bundle everything together to find the right balance of customer experience, price and service. It’s about identifying unique differentiators to compete with traditional cybersecurity players.”

Team talk

“Chassar has seen that optimal results come from a delicate, time-consuming balancing act, complicated by the fact that many startups lack senior staff with the skills to ensure market success. Most startups are lean and focused primarily on their technology-driven solution. They often lack the financial resources to hire someone with the right skills to cover the other essential steps to launching their product.”

According to Chassar, that is why he and his extensive team of advisors can provide significant added value.

Chassar says, “The key is to address these challenges as early in the business lifecycle as possible. Mistakes made early can be very difficult to correct later.”

In Claroty’s case, Chassar critically reviewed and overhauled an initial $50 million sales pipeline that he deemed largely ineffective, and rebuilt it from scratch. This process included redefining the total addressable market, identifying ideal customer profiles, and establishing strategic partnerships. “We had to rethink everything from the ground up, ensuring that every step was aligned with our ultimate goal of exceeding $100 million ARR,” Chassar explained.

A key aspect of his philosophy was to unite teams under a single, compelling vision. He also emphasized the importance of the “Rule of 40,” a crucial metric in the software and technology industry that measures a company’s balance between profit and growth.

“It wasn’t just about growing fast; it was about growing well,” Chassar emphasized. His strategy focused on responsible revenue growth, with an emphasis on customer intimacy, retention, operational efficiency through automation and AI, and strategic alliances. “Our goal was to create a foundation that was both robust and dynamic, balancing financial and market considerations with sustainable growth.”

According to Chassar, threat actors are currently about two weeks ahead of current warnings about cyber threat protection technology. However, new solutions are available that can close this gap and actually give organizations a head start when it comes to protecting sensitive data.

“Startups are leading the way with new solutions, but they need help not only building them, but also bringing them to market. We may need to create an ecosystem where government funding and other sources of capital come together to address this. More budgetary support is needed for cybersecurity startups.”

“Raising capital is hard, and optimizing your operations for market can be even harder. A startup often needs an advisor with a proven track record, and it helps if they’re passionate about the impact of technology on our lives,” Chassar concludes.

To learn more about Simon Chassar and his unique approach to getting startups ready for market, visit his LinkedIn page.

Contact details:

Simon Chassar
(email address)
www.linkedin.com/in/schassar
@CyberChassar

SOURCE: Simon Chassar