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The real dilemmas of cybersecurity startup ideation, discovery, and validation

Ross Haleliuk cuts through the noise of the cybersecurity startup scene with a provocative diagnosis: the industry is trapped in a self-reinforcing loop where founders validate ideas only with the same few visible executives, guaranteeing a flood of identical, unviable products. This isn't just a critique of bad product strategy; it's an indictment of an ecosystem that mistakes the opinions of a tiny, vocal elite for the needs of the entire market. For busy operators and investors, the stakes are high because the current model is burning capital on solutions that solve problems nobody else actually has.

The Great Cybersecurity Echo Chamber

Haleliuk begins by dismantling the assumption that security is a universal priority. He argues that for most organizations, security is merely a cost of doing business, not a revenue driver. "We like to repeat a blanket statement that security should be top priority for every organization, but the reality is that it's objectively not equally important for all kinds of companies," he writes. This distinction is crucial because it explains why the market is so fragmented. While a bank or a tech giant treats compliance as existential, a manufacturer buying coal or a sofa has zero incentive to prioritize the security posture of their supplier beyond basic contractual guarantees.

The real dilemmas of cybersecurity startup ideation, discovery, and validation

The author identifies the root cause of the startup glut as a social phenomenon rather than a technical one. He describes a "great cybersecurity echo chamber" where the people building products, the investors funding them, and the executives giving feedback are all the same group. "The problem is in thinking that these perspectives represent the industry as a whole," Haleliuk notes. This framing is sharp because it shifts the blame from a lack of creativity to a failure of sampling. Founders aren't building bad products because they are uncreative; they are building them because they are asking the wrong people the same questions.

The vast majority of CISOs have never been to RSAC or Black Hat, and of those who did, many haven't been back for a while.

This observation is the piece's most damning evidence. Haleliuk points out that the 98-99% of Chief Information Security Officers who are busy running their actual security programs are invisible to the startup ecosystem. They are raising children, caring for relatives, or simply managing crises, leaving the stage to the 1-2% who are podcast guests, conference speakers, and VC advisors. By chasing consensus from this tiny, hyper-connected minority, founders are essentially polling a focus group that is already saturated with startup pitches.

Critics might argue that these visible CISOs are the most sophisticated buyers and therefore the best indicators of market direction. However, Haleliuk counters that their visibility is precisely the problem; they are the only ones with the bandwidth to engage, not necessarily the ones with the most urgent, unsolved problems.

The Broken Validation Loop

The article moves from diagnosis to the mechanics of failure. Haleliuk describes a cycle where founders promise to "talk to 100 CISOs," only to end up talking to the same ten people repeatedly. The feedback loop becomes a closed circuit. "Founders hear encouragement where there should have been disqualification," he writes, explaining that visible executives, tired of hearing the same pitch, offer polite non-committal responses like "This could be useful" rather than the hard "no" that would save the founder time.

This politeness masks a brutal reality: budgets are already locked, and similar tools are gathering dust. The author highlights a diagram by Stephen Ward that illustrates this "closed loop of cyber ideation," where the feedback from the few validates ideas that the many will never buy. "Growth slows, PMF never arrives, and everyone wonders why the 'CISO validation' didn't translate into traction," Haleliuk observes. This analysis is particularly effective because it explains why so many well-funded startups fail to gain real market share despite having "valid" customer feedback.

Don't confuse politeness with purchase intent.

Haleliuk's advice here is stark and necessary. He argues that the current validation model is broken because it relies on the wrong data points. Investors and founders are mistaking the enthusiasm of early adopters for broad market demand. The consequence is an industry crowded with nearly indistinguishable products, all built on the same flawed premise. Even the current wave of artificial intelligence tools is not immune; Haleliuk warns, "If you think that somehow the AI wave is different, it's not."

Breaking the Pattern

So, how does one escape the echo chamber? Haleliuk suggests a contrarian approach: talk to people others are ignoring. He advocates for digging deeper into the organization, speaking to heads of security engineering or operations rather than just the C-suite. "I'd even go deeper and say that it's very helpful to understand the problems of the end users, not just directors," he argues. The logic is sound: a CISO is an economic buyer, not a product feedback center. If the end users don't find the tool useful, the company won't renew the contract, regardless of the initial purchase.

He also draws on the experience of Jay Chaudhry, founder of Zscaler, to warn against over-reliance on customer feedback for disruptive innovations. "Most customers won't be excited about disruptive tech," Haleliuk notes, citing Chaudhry's view that customers often prefer incremental improvements over radical shifts. This adds a layer of nuance to the argument; while founders need to talk to more people, they must also be careful not to let conservative feedback stifle necessary innovation.

Taking contrarian bets gets easier if you find a way to talk to people who care about (and are willing to pay for) solving different problems.

The author's personal experience reinforces this point. He describes the hard work of reaching out to friends of friends to find customers outside the startup bubble. This is not a scalable, automated process, which is exactly why most founders skip it. But Haleliuk insists that the only way to find a unique market fit is to do the unglamorous work of finding the 99%.

Bottom Line

Ross Haleliuk's argument is a necessary corrective to the startup industry's obsession with visibility over viability. The strongest part of his case is the identification of the "echo chamber" as the primary driver of product homogeneity, a structural flaw that no amount of AI or clever marketing can fix. The biggest vulnerability in his approach is the sheer difficulty of execution; finding and convincing the invisible 99% is exponentially harder than pitching the visible 1%. Nevertheless, for any founder or investor in the cybersecurity space, the verdict is clear: if your validation loop looks the same as everyone else's, your product will too.

Sources

The real dilemmas of cybersecurity startup ideation, discovery, and validation

by Ross Haleliuk · Venture in Security · Read full article

Over the past several months, as I was working to flesh out the problem space my co-founder and I are going after, and the specific problem we are looking to solve, I spent a lot of time going through the startup ideation, discovery, and validation. On this journey, I learned several things that I think will be helpful for other founders. In this piece, I am going to share some of these learnings.

Specifically, I am discussing dilemmas with cybersecurity startup ideation, discovery, and validation.

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First, some background.

In December last year, I wrote an article titled “Let’s have an honest conversation about the state of cybersecurity”. In that piece, I explained several fundamental truths of our industry. Before we dive into the dilemmas with startup ideation, it’s very helpful to discuss a few ideas I covered in that article because they are foundational for what we’re going to be talking about here.

We like to repeat a blanket statement that security should be top priority for every organization, but the reality is that it’s objectively not equally important for all kinds of companies. For example,

For companies in highly regulated industries such as insurance and financial services, being able to meet compliance requirements is quite literally an existential problem. If they cannot prove to the auditors that they are compliant, they might not be allowed to stay in business. This is a huge deal.

For companies in the technology sector, security and compliance are critical sales enablement instruments. This makes sense since tech companies need to make sure customers are comfortable sharing their data or embedding the companies’ software into their organizations. To them, cybersecurity is a core ...