“Privacy is one of the biggest problems in this new electronic age” —Andy Grove

Cybersecurity, data privacy, and regulatory compliance have become increasingly essential business challenges for startups and global organizations alike, and these issues impact starting, running, investing, or acquiring a business.

The below questions may be the type of questions you receive from investors now or as your company matures. It is important that you are able to answer them (and it is fine to talk about your intent if you are still early stage).

Data management and privacy

• How does your startup manage and secure user data? Describe your data lifecycle management from collection to deletion.
• How do you obtain user consent for data collection? What methods do you employ to ensure transparency about data usage?
• Can you demonstrate adherence to data minimization and purpose limitation principles in your data collection and processing activities?

Data security measures and compliance

• What cybersecurity frameworks or standards (e.g., ISO 27001, NIST) guide your data security practices?
• Detail your approach to staying compliant with international data protection laws relevant to your market and user base.
• Do you have a documented incident response plan for data breaches? How do you notify affected users and regulatory bodies?

Risk assessment and mitigation

• Describe your process for identifying, assessing, and mitigating data privacy and security risks.
• How do you assess and manage the data security practices of third-party vendors and partners?

Workforce awareness and training

• What ongoing training do employees receive on data protection, cybersecurity, and privacy best practices?
• How do you ensure employees understand the sensitivity of the data they handle and the importance of maintaining its confidentiality?

Policy measures

• How do you utilize encryption, anonymization, or pseudonymization to protect data at rest and in transit?