Winning Investor Confidence in a Saturated Market

The world of startups, particularly in cybersecurity, has seen dramatic shifts in recent years. Lior Arbel, CEO of Elemendar brings decades of industry experience and a wealth of insights into what it takes to thrive in this fast-changing landscape. From navigating the highs of the unicorn boom to overcoming modern challenges, Lior’s journey offers lessons for startups striving to scale.

Lior shared his invaluable insights on a recent episode of the Tech Salescraft podcast with James Hounslow. From navigating economic uncertainty to building a strong sales foundation and choosing the right investors, Leor’s advice is a must-read for founders and leaders alike.

The Shift from Boom to Reality

During the post-pandemic tech boom, startups flourished as credit was abundant and the market celebrated new unicorns daily. However, the landscape has shifted. As Lior explains, “In cybersecurity, the biggest challenge for CISOs or any executive is fighting the unknown.”

With tighter budgets and a more cautious investment climate, startups are forced to focus on clear execution and resilience. This reality is especially pronounced in cybersecurity, where the complexity of threats demands proven, reliable solutions.

Sales as the Lifeblood of Startups

For any startup, a groundbreaking idea is just the beginning. The ability to sell that idea effectively is what drives growth. Lior emphasises this point: “You can have the best product in the world, but without a strong sales engine, even the most groundbreaking technology will remain underutilised.”

Startups need to establish clear messaging, identify their target audience, and ensure their teams understand how to address customer pain points. Building a robust go-to-market strategy early on is essential for sustained success.

The Role of Leadership

Leadership plays a pivotal role in a startup’s ability to scale. For Lior, leadership means setting an example and working alongside the team to foster collaboration. “If we have a project and a deadline, then I will be there with them, supporting them, making sure they’re energised and feel the support,” he explains.

This approach builds trust and strengthens the culture, ensuring the team is united and ready to tackle challenges.

Picking the Right Investors

Just as investors carefully evaluate startups, startups must also choose their investors wisely. Lior stresses the importance of alignment with investors who not only provide funding but also understand the challenges of the industry. “Don’t just pitch to anyone willing to listen,” he advises. “Look for funds that specialise in your niche or demonstrate a deep understanding of the challenges you’re solving.”

The right investor brings far more than capital—they bring networks, insights, and long-term commitment to growth.

A Practical Approach to Cybersecurity

One of the standout lessons from Lior’s experience is the importance of prioritisation in cybersecurity investments. He offers a simple yet effective analogy: “If you see that your street has more stolen cars than burglaries, you invest in something to protect your car, not bars for your house.” This practical approach ensures resources are focused on the most relevant risks, maximising impact without unnecessary expenditure.

Moving Forward with Confidence

As the cybersecurity space continues to grow, startups face both challenges and opportunities. Lior’s experiences highlight the importance of resilience, strategic alignment, and a focus on execution. For founders, success lies in building trust with investors, fostering strong team cultures, and maintaining a clear focus on their market’s needs.

“In cybersecurity, the biggest challenge is fighting the unknown. But with the right strategies, startups can thrive even in the most challenging times.”

Use the link below to watch Lior’s full Tech Salescraft podcast: