As part of the Cyber Runway Scale programme, Luke Wilson Mawer shared his experiences as a founder and discussed the challenges of scaling a cybersecurity startup. The session explored lessons learned, growth strategies, and the importance of resilience in a founder’s journey.

Building a startup from the ground up is a journey filled with challenges, learning curves, and occasional pitfalls. Luke Wilson Mawer, a seasoned founder, CTO, and CEO with deep experience in cybersecurity startups, joined a Cyber Runway: Scale session provided by the Department for Science, Innovation & Technology and hosted by Plexal, where I attended on behalf of Cyber Tzar, the Enterprise Supply Chain Risk Management platform.

Luke shared his experience scaling multiple cybersecurity companies from inception to Series A and beyond. Having co-founded companies such as Kynd, Lab 1, and contributed significantly to many more, his insights into product-market fit, early-stage traction, and investor relations provided valuable takeaways for founders navigating similar growth challenges.

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Luke Wilson Mawer Founders Fireside 7th November 2024

This video is publicly available on the Plexal YouTube playlist for the Cyber Runway programme.

Key Takeaways from Luke Wilson Mawer’s Journey

1. Early-Stage Growth: The Power of Persistence

Luke emphasized that generating traction in a B2B market is rarely linear. While early startup advice often suggests a clear-cut process to product-market fit, the reality is a mix of trial, error, and continuous iteration. His experience highlighted that:

• Many early targets go unmet, but persistence in refining messaging, demonstrating value, and securing initial customers is key.
• Storytelling is crucial, even the most technical solutions need a strong narrative to convince buyers.
• Networks matter. Warm introductions through personal or investor networks often result in more meaningful partnerships than cold outreach alone.

2. Investor Relations: Should You Seek External Funding?

For startups considering investment, Luke provided a framework for deciding whether to seek external capital:

• Organic growth vs. rapid scaling: If a business is profitable, scalable, and doesn’t need to grow beyond a certain size (e.g., £6M revenue, 25-person team), external funding may not be necessary.
• Venture Capital (VC) isn’t for everyone: VCs expect fast growth, aggressive scaling, and eventual exit strategies. If founders prefer steady, controlled expansion, bootstrap funding or strategic partnerships may be better.
• Valuation is an art, not a science: While technical valuation methods exist (e.g., Venture Capital method, peer benchmarking), investor perception and storytelling play a larger role in determining a startup’s market value.

3. Transitioning from Founder to CEO or CTO

Many technical founders struggle with the decision of whether to stay in a hands-on development role or transition into a full-time CEO position. Luke reflected on his own experience:

• Hiring a competent Head of Engineering was a game-changer, allowing him to focus on high-level strategy rather than being the sole technical contributor.
• The choice depends on the founder’s natural inclination, a deep tech product might benefit from a technical CEO, while commercial-heavy businesses may require a CEO with strong sales and investor relations skills.
• Delegation is key, founders who remain the sole technical backbone of the company risk burnout and bottlenecks in growth.

4. Hiring Challenges and the Cost of Bad Hires

One of the biggest mistakes Luke identified in his journey was bad hiring decisions:

• Rushing the hiring process often leads to employees who aren’t the right cultural fit or lack the required skills.
• Poor hires can lower morale, slow progress, and impact team dynamics.
• Founders should trust their instincts, if something feels off about a candidate, it’s better to reassess than force a fit.

5. The Role of Cybersecurity in Social Media and Risk Assessment

Luke’s previous company Peer Index focused on social media analytics, a space that overlaps with cybersecurity. He noted that human factors and social media influence play a role in cyber risk:

• Companies could assess employee dissatisfaction (e.g., via Glassdoor ratings) as a potential indicator of insider risk.
• Behavioral analytics can provide cybersecurity insights, such as monitoring how employees interact with external networks.
• AI-driven social media monitoring tools could help identify spear-phishing risks and fake accounts used for cyber-attacks.

Final Thoughts

Luke Wilson Mawer’s insights reinforced the reality that startup success is rarely a straight path. Whether it’s securing early traction, deciding on external investment, or transitioning from a technical founder to a CEO, adaptability and persistence are key.

For those interested in cybersecurity entrepreneurship, Luke’s journey offers a roadmap of lessons, especially the importance of refining messaging, hiring strategically, and understanding the long-term implications of funding decisions.