Two major trends are converging, creating challenges for startups that rely on closing enterprise deals. The rise of AI and B2B-focused startups has reshaped the global startup ecosystem. At the same time, government regulations are making sales deals harder to close. As these trends collide, businesses face roadblocks when navigating the increasingly complex security reviews required to sell their products.
If you’re a B2B company trying to close a deal with a Fortune 500 company, your first task is convincing them to buy your product. But that’s only half the battle. After they agree to purchase, passing their Security Review can take months. Sales teams across Silicon Valley and beyond are closing deals, only to be delayed by lengthy Security Reviews.
The Sales Bottleneck: Security Reviews Drag Out Deals
Security Reviews are not a minor issue affecting just a few companies. They’re becoming widespread. The global economy could slow down if businesses can’t unblock B2B enterprise deals. Companies won’t be able to innovate, partnerships can’t form, and new products won’t reach the market. Yet, savvy sales leaders have started to figure out a way through this maze. Companies like Figma, Snap, and OpenAI are finding a solution: Assurance Profiles.
The Magnitude of the Problem: 17,000+ B2B SaaS Companies
There are over 17,000 B2B SaaS companies and 44,000 B2B AI companies—and 64% of all AI companies are B2B. The global startup ecosystem has shifted from B2C to B2B in recent years. But in today’s environment of data breaches and cybersecurity incidents, like the 2023 biggest hack of the year, the MOVEit hack, governments are imposing tougher data privacy and cybersecurity laws.
Businesses, particularly in industries like Fintech, face different regulations depending on where they operate. For instance, 137 countries have their own data privacy laws. In the U.S., laws can vary by state, meaning conducting business in California differs dramatically from Colorado or Texas.
The Rise of Security Teams: Surmounting the Security Review Hurdle
As a result, companies now have entire teams focused on navigating security reviews. Some startups report that security reviews have become as important as sales itself. Even with dedicated teams, these reviews still require input from other departments—Sales, Legal, Product, and Infosec—creating bottlenecks and slowing down deals.
Lessons from Unicorns: Using Assurance Profiles to Streamline Deals
Leading companies, including unicorns, are taking a proactive approach. Instead of waiting for security reviews to hold them back, they are investing in Assurance Profiles. These profiles centralize, standardize, and customize security information, addressing customer concerns before they arise.
“Security reviews are becoming the final hurdle in closing enterprise deals,” says Pukar Hamal, founder and CEO of SecurityPal. His company launched a free Assurance Profile to help businesses streamline their security processes. “For high-growth B2B companies, an Assurance Profile bypasses many of the inefficiencies tied to security assessments.”
How Assurance Profiles Work: A One-Stop Solution for Security
Companies like Plaid, Airtable, and OpenAI are already using Assurance Profiles. These platforms help answer most security questions companies typically receive, reducing the need for back-and-forth communication. This system allows businesses to focus on growth instead of repetitive security questionnaires.
An Assurance Profile is a customizable platform that houses a company’s most crucial security and compliance information. This includes:
- Security certifications
- Privacy policies
- Information security protocols
- Third-party audit results
Time is Money: Saving Time with Assurance Profiles
In the fast-paced world of B2B, speed is a competitive advantage. According to Hamal, companies can save 1 to 5 days per security review with an Assurance Profile. Startups working under tight deadlines know that even a few days can make or break a deal.
Unicorns using these profiles report a 10% to 30% reduction in security questionnaires received. For companies managing hundreds or thousands of reviews annually, this results in significant time savings.
White-Glove Service: SecurityPal’s Questionnaire Concierge™
SecurityPal goes a step further with its Questionnaire Concierge™, pairing Assurance Profiles with a 24/7 team of certified security experts. This service helps companies manage complex security reviews, allowing them to scale without the need for extensive internal teams.
“Every enterprise deal requires customization, especially regarding security,” says Hamal. “With our Questionnaire Concierge™, startups get access to experts who handle these reviews on their behalf.”
Security as a Competitive Advantage
By adopting Assurance Profiles and services like SecurityPal’s Questionnaire Concierge™, companies are turning security from a hurdle into an asset. They close deals faster and free up their internal security teams to focus on improving overall security.
If your company is struggling with security reviews, it’s time to follow the unicorn playbook. Assurance Profiles can help you get ahead, reduce review time, and close deals faster—all while building trust with your customers.
The market moves faster than most companies can keep up with, so investing in Assurance Profiles may be your smartest move.
Featured Image Credit: Markus Winkler; Pexels
