Grants available for small business cybersecurity solutions

Today, Mastercard launched its latest Strive Innovation Fund. The fourth of its kind, this round offers up to €500,000 to up to 20 winners developing digital and data-first solutions that promote the growth of small businesses in Europe.

Mastercard Strive EU’s four innovation fund themes

The Fund seeks solutions that support small businesses to:

1. Unlock working capital and credit through embedded finance.
2. Go digital safely by bolstering cybersecurity, which will be explored in this blog.
3. Navigate evolving consumer preferences and regulatory expectations around environmental sustainability.
4. Harness artificial intelligence (AI) to save time and make money.

Why cybersecurity?

While European small business owners recognize that digitalization is crucial to staying competitive, just one-third have made it a priority, and 28% attribute this to their lack of expertise in cybersecurity. This concern is well founded. Going digital comes with new risks, such as cyberattacks that can cause significant financial losses and reputational damage. A cyberattack can result in revenues lost to ransom payments, downtime, remediation, legal costs, fines, and audit fees. A business may have to pass these costs to their customers, compromising their competitiveness. A majority (87%) of small businesses store customer data; a breach could result in a hefty fine that goes well beyond their available cash reserves. Cyber attacks can also hinder small businesses’ ability to access credit or benefit from lower borrowing costs. These impacts can be devastating for a small company; around 60% go out of business within six months of a cyberattack. Business owners’ concern about the risks involved in digital transformation limits their ability to remain competitive in the ever-changing digital landscape.

Providing a shield to small businesses

Cybersecurity is especially important now, as cybercrime becomes more common and complex, and increasingly targets small businesses. In 2021, almost half of all cyber breaches and 70% of ransomware attacks were directed at small businesses, and 61% of small businesses fell victim to a cyberattack that year.

Cyberattackers target small businesses due to their lack of robust security plans to combat phishing and ransomware, the most common types of business cyberattacks. Over 85% of small businesses do not have a cybersecurity plan in place, due to lack of funding (47%), skills (50%), and awareness of potential risks (36%).

The Strive EU Innovation Fund is therefore seeking digital solutions that address small businesses’ cybersecurity challenges. These solutions may offer:

1. Risk assessment, enabling small businesses to:

• Identify and assess potential cyber risks.
• Evaluate the sensitivity of their data and the potential impact on their operations if compromised.
• Understand the potential vulnerabilities in their systems and processes.
• Comply with regulations and standards to avoid legal consequences.

2. Detection and protection for enhanced cyber resilience, enabling small businesses to:

• Detect and deter cyber threats fast and early, such as via AI-powered threat detection and response tools.
• Protect themselves against cyberattacks, for example, by improving resilience to attacks.
• Protect their customer and financial data.
• Authenticate software for the digital tools they adopt.

3. Cyber risk mitigation, enabling small businesses to:

• Reduce the likelihood and impact of a successful cyberattack.
• Recover from cybersecurity breaches, such as cybersecurity insurance.

If you are working on a solution that enables small businesses to address cybersecurity challenges, then we’re looking for you! Please see our website to find more information and apply for the Strive Innovation Fund. Applications close on March 11, 2024.