Podcast Summary
SMB Cybersecurity: SMB cybersecurity companies like Huntress can benefit from industry incidents by gaining increased demand but must also address concerns about their own resiliency and potential productivity outages. Prioritizing aggressive security measures, QA, and good architecture design can help mitigate risks.
Cybersecurity company Huntress, which focuses on SMBs, experienced both positive and negative effects from the CrowdStrike-Microsoft incident. On the positive side, they received increased demand as they were seen as a viable alternative to CrowdStrike for smaller businesses. However, they also faced questions about their own resiliency and the potential for causing productivity outages themselves. To prevent such issues, Huntress prioritizes being aggressive in their security measures while also investing in QA and good architecture design. The unknown threats remain a challenge, but the company continues to ask larger questions about what more can be done to improve cybersecurity at the infrastructure level.
Operating system architecture and security: Finding a balance between stability and security is crucial in operating system architecture. Clear communication between vendors and clients is essential, and continuous improvement is necessary to adapt to evolving threats.
The operating system architecture of some companies, which allows deep access for security vendors, can provide more opportunities for stability but also increases the risk of instability and potential security breaches. This was highlighted in a recent incident where a vulnerability in the system led to a large-scale attack, affecting millions of computers. The speaker emphasized the importance of finding a balance between stability and security, and the need for continuous improvement and adaptation in the face of evolving threats. Another key point discussed was the importance of clear communication and understanding between vendors and clients regarding the scope of protection offered. The speaker also shared an offer from Oracle to help startups save money by moving to their cloud infrastructure. Regarding Huntress, the company focuses on endpoint protection for small businesses and mid-market enterprises, offering a cost-effective solution with world-class human expertise.
Cost-effective cybersecurity for SMBs: Huntress offers a cost-effective cybersecurity solution for SMBs by focusing on common problems and using advanced software and a team of experts, delivering fast enough protection without the need for extensive human expertise or low-signal data collection and storage.
Huntress, a cybersecurity company, has revolutionized the industry by offering a cost-effective solution for small and medium-sized businesses (SMBs) through the use of advanced software and a team of experts. Instead of trying to compete with high-end, expensive cybersecurity solutions, Huntress focuses on what problems are most common for the 99% of businesses below the poverty line and builds a solution that is fast enough to outpace hackers without the need for an extensive team of human experts. By not collecting and storing low-signal data, they are able to deliver a right-priced solution for the right-risk model. This approach has resulted in triple and double revenue growth and now 70% growth. In essence, Huntress is not a Formula One car, but a high-end sports car that is still fast enough to outpace hackers at a fraction of the cost.
Partnering with MSPs for SMB cybersecurity: Partnering with MSPs instead of targeting individual SMBs directly can lead to lower gross churn, higher net retention, and a more scalable business model in the SMB cybersecurity market.
To succeed in the SMB market, particularly for cybersecurity products, it's essential to adopt a unique go-to-market strategy. Instead of targeting individual small businesses directly, partnering with Managed Service Providers (MSPs) can lead to lower gross churn, higher net retention, and a more scalable business model. This approach allows MSPs to handle the sales cycle, customer support, and retention, while the original company focuses on product development and maintaining strong relationships with its partners. This model has proven successful in various markets, including Australia and New Zealand, and even in English-speaking European countries. However, it's crucial to remember that companies above 100 employees might have their IT departments, so targeting MSPs below that threshold is more effective. This approach requires experimentation and learning as you go, but the potential rewards include a more efficient, profitable, and sustainable business model.
Expanding business scope, saying no to deals: Being open to expanding business scope can lead to new opportunities, but saying no to potential deals requires strong conviction and careful consideration for long-term growth and mission.
Being open to expanding the scope of your business and partnerships, even if it means potential conflict, can lead to new opportunities and growth. This was a lesson learned the hard way by a cybersecurity company that initially focused too narrowly on working through service providers and ignored the mid-market enterprise segment. Additionally, knowing when to say no to potential deals or offers, such as an IPO or acquisition, requires strong conviction and careful consideration. Companies need to balance the desire for growth and funding with the long-term mission and vision. Furthermore, startups must be capital efficient and make the most of their resources, such as leveraging on-demand talent from platforms like Lemon.io to build their team.
AI and content startups: AI model companies are disrupting the content market, Tolbit aims to provide infrastructure and fair compensation for publishers as the rules and unit economics are still being defined.
Tolbit is a startup addressing the intersection of content and AI model companies. They were inspired by the early use of AI tools like GPT-4 scraping websites for data, and saw the potential chaos and uncertainty in the market. Tolbit aims to provide infrastructure and fair compensation for publishers as the rules and unit economics are still being defined. They have raised $7 million in funding and currently have about nine full-time employees. The company started in late 2023, and has seen a rapid evolution in the space as more publishers become aware of the potential benefits and challenges of AI tools. Tolbit's mission is to bring structure and protocols to this emerging market and ensure fair compensation for publishers.
Content Monetization in AI Era: Tolbit is a platform connecting publishers and AI companies, enabling publishers to set rates for access to their content and ensuring fair compensation in the era of AI monetization.
Tolbit is working to create a new economic model for content monetization in the age of AI, acting as a middleman between publishers and AI companies. Tolbit's platform allows publishers to set their own rates for access to their content, with the vision of a future where micro-transactions are seamlessly integrated into AI interactions. Currently, there are over 110 publishers on the platform, and the number continues to grow due to the pressing need for publishers to monetize their content in this new landscape. The publishers range from large publications to small bloggers, and Tolbit aims to provide compensation for all sizes. The incentives for AI companies to pay for content are aligned, as they need access to breaking news and quality information for their systems. Tolbit is currently in the pilot stage with two AI companies, and the timeline for wider implementation is a few months. The ultimate goal is to establish a sustainable economic model for content monetization in the era of AI, ensuring that publishers are fairly compensated for their work.
Content pricing: Sayera is developing a complex pricing system for accessing content and data from various publishers, considering factors like content age, API usage, and keywords. The goal is to create a quick, fair, and effective licensing and compensation system, with technology enforcing licensing agreements and creating paywalls for unauthorized users.
The process of setting up a flexible and fair pricing system for accessing content and data from various publishers and sources is a complex task. The vectors for pricing come from conversations with over 100 publishers and include factors such as the age and value of content, API usage, and specific keywords or topics. The goal is to create a system that allows for quick and easy licensing and compensation for content owners, while also preventing unauthorized access. The use of technology to enforce licensing agreements and create a paywall for unauthorized users can be seen as a carrot-and-stick approach. The system is expected to begin operating in a few months, and the aperture is quite wide, potentially including real estate data, stock market data, sports data, and more. The shift in the wind regarding the robots exclusion protocol (REP) not being enforceable speaks to the importance of active enforcement and licensing deals. Overall, the company, Sayera, is working to make the process of accessing and compensating for content and data more efficient and effective for all parties involved.
Data Security Posture Management: Saya's agentless approach and DSPM solution enable quick integration with large numbers of data stores and provide visibility into sensitive data and access control, addressing the growing need for data security and compliance in today's competitive business landscape.
Saya is a data management platform that helps enterprises assess, secure, and leverage their data more effectively in today's complex and rapidly growing data landscape. The company's agentless approach and Data Security Posture Management (DSPM) solution are key advantages, enabling quick integration with thousands or even tens of thousands of data stores and providing visibility into sensitive data and access control. The need for DSPM has grown as data has become a priority for businesses looking to gain a competitive edge, leading to an increased focus on data security and compliance. Saya's recent successful funding rounds demonstrate the market's recognition of the value and potential of their solution in this space.
Business Growth and AI Implementation: Focus on growing your business and maintaining a high standard, funding opportunities will come when the right moment arises. AI adoption is driving business growth, but prioritize secure implementation to avoid potential risks. Despite economic challenges, demand for cybersecurity solutions remains strong.
Focusing on growing your business and achieving momentum is more important than constantly worrying about fundraising. When the right opportunity arises, funding can come relatively easily. The speaker's company, Sire, has experienced impressive growth, reaching tens of millions of dollars in ARR and aiming for 3-4x revenue growth in the current year. The conversation also touched on the balance between growth and cost containment, with the perspective being to grow as fast as possible while maintaining a high standard. Additionally, the adoption of AI is driving business growth, but security teams are playing catch-up, making it essential for businesses to prioritize secure AI implementation. Demand for cybersecurity solutions remains strong due to the constant threat of breaches, and the intersection of cybersecurity and AI presents an exciting opportunity for growth. The speaker also mentioned that software companies have seen a resilience in demand despite economic challenges. However, they have experienced pricing pressures and budget tightening from customers.
Data Security Challenges: Effective data access governance and control are crucial to mitigating risks and protecting the digital economy, despite advancements in encryption technology and increased understanding of cyber security.
While there has been significant growth and increased understanding in the cyber security space over the past few years, the fundamental problems of data security, such as publicly exposed data due to human error, continue to pose major challenges. Encryption technology can be valuable in preventing such mistakes, but it's not a magic solution as decryption requires authorized access. Ultimately, effective data access governance and control are crucial to mitigating risks and protecting the digital economy. The importance of data security in the age of the data revolution cannot be overstated, and the future may hold great opportunities for companies that can tackle these challenges effectively.