Scaling SaaS videos: the cyber security risks CFOs can’t ignore
As SaaS businesses scale beyond Series A, cyber security and data protection move quickly from an IT concern to a board-level financial risk.
In the short video accompanying this insight, Ada Domanska, Associate Cyber Security Consultant at Moore Kingston Smith, explains why cyber maturity is now critical for SaaS scale-ups preparing for further fundraising, enterprise sales or exit.
For CFOs and senior finance leaders, the message is clear. Cyber risk directly affects valuation, growth and trust.
Cyber risk is accelerating
The cyber threat landscape facing SaaS businesses is evolving rapidly. Artificial intelligence is no longer just a productivity tool used internally. It is also being used by threat actors to scale and refine attacks.
Phishing attempts are more convincing, deepfakes are harder to detect, and vulnerabilities can be identified far more quickly than before.
At the same time, the barrier to entry for attackers has fallen. Less sophisticated actors can now launch highly effective attacks. This increases the likelihood of incidents for SaaS businesses with complex systems and large volumes of data.
For finance leaders responsible for risk management and commercial outcomes, this means cyber security can no longer be treated as a secondary issue or deferred until later stages of growth.
AI adoption: balancing speed and control
Many SaaS scale-ups are embracing AI to move faster by automating workflows, analysing data and supporting decision-making.
However, without clear policies and governance, AI can introduce significant data protection and regulatory risk.
Sensitive commercial or personal data entered into public AI tools may be exposed externally, even when employees’ intentions are positive. Accountability does not sit with the tool provider. It remains with the organisation.
From a CFO perspective, this creates a need for clear internal guidance on how AI is used, supported by training and awareness across the business. The right controls and education reduce risk while allowing teams to benefit from productivity gains.
Third-party risk and the SaaS ecosystem
SaaS businesses do not operate in isolation. APIs, cloud providers, payment platforms and third-party integrations are essential to scaling, but they also expand the risk surface.
Even where internal controls are strong, weaknesses in third-party systems can expose your business to incidents. Increasingly, breaches originate within the wider supply chain rather than a single organisation.
This has clear commercial implications. Investors and enterprise customers are applying more rigorous cyber due diligence, particularly where customer data or mission-critical services are involved.
Why cyber maturity affects valuation and growth
Cyber incidents are often discussed in terms of ransom demands or immediate financial loss, but the wider impact is often more significant. This includes:
- reduced company valuation during fundraising or exit
- reputational damage with customers and partners
- delayed or lost enterprise deals due to security concerns
- increased scrutiny from regulators and longer due diligence cycles
Cyber maturity is increasingly seen as a signal of broader operational maturity. Strong controls build confidence among investors, customers and employees, supporting faster sales cycles and more sustainable growth.
It is not just about compliance. It is about trust.
Preparing for incidents and regulatory obligations
Data protection obligations introduce additional pressure. In the event of a data breach, organisations typically have 72 hours to make an initial report to the relevant regulator.
At this stage, not all facts need to be known, but preparation is critical.
Clear incident response processes, reporting lines and responsibilities help reduce stress at a critical moment and limit financial and reputational exposure.
Where CFOs should start
For finance leaders concerned about cyber security and data protection, the starting point is not a single technical control or certification. It is about understanding risk across the business, including:
- critical systems and how sensitive data is stored, shared and used
- people risk, including awareness, training and culture
- third-party and supply chain dependencies
- governance gaps, including AI usage and data protection policies
Cyber security should not sit solely with IT or the CTO. Given the financial, regulatory and commercial consequences, it is a shared responsibility, with CFOs playing a central role.
Aligning cyber security with commercial strategy
As SaaS businesses scale, security goals must align with commercial objectives.
Selling to enterprise customers or regulated markets increases expectations around frameworks such as Cyber Essentials, ISO 27001 or SOC reporting. These frameworks help implement recognised controls without reinventing the wheel.
When designed early, security becomes built in by design, supporting long-term growth rather than slowing it down.
Proactive investment in cyber security is almost always less costly than reacting after an incident.
Cyber risk is financial risk
For SaaS businesses with revenue of £10 million and above, cyber security and data protection are no longer future considerations. They are core components of financial risk management, valuation protection and exit readiness.
Strong cyber maturity supports resilience, protects reputation and accelerates growth. It is a critical priority for finance leaders.
Speak to us
Moore Kingston Smith works with technology and SaaS scale-ups to assess cyber security and data protection maturity and support practical improvements aligned to commercial objectives.
If you are preparing for fundraising, enterprise sales or exit, our cyber security and data protection team can help you understand your current position and what good looks like at your stage of growth.
Get in touch to arrange an initial conversation and a free cyber health check.
