Why CyberSecEC Failed: Distribution | Startup Autopsy
€2.5M
Raised
4y
Time to collapse
// startup autopsy
CyberSecEC
Ecuador cybersecurity blocked from public procurement by 3-year SERCOP track record requirement while IMF, IBM, and Fortinet covered the primary enterprise market
Years-long decline before final shutdown · Fatal mistake: Ecuador cybersecurity: BCE (Central Bank) used IMF technical assistance cybersecurity. ARCOTEL (telecom regulator) had mandatory CSIRT with US NIT-aligned standards. Petroecuador used Schlumberger cybersecurity. Major private companies used IBM Security and Fortinet resellers. Independent cybersecurity had no public procurement access (SERCOP required 3-year track record) and SME market lacked budgets.
Evaluating only CyberSecEC’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. Documented cause: Distribution.
Key Events Timeline
FOUNDING
CRISIS
SHUTDOWN
Full Analysis
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Documented cause
CyberSecEC built cybersecurity in Ecuador. BCE/IMF, ARCOTEL/NIST, Petroecuador/Schlumberger, IBM/Fortinet covered enterprise. SERCOP required 3-year track record. 2-year company applied. Rejected.
Lesson
“Ecuador cybersecurity must target the shrimp and banana export sector (highest cyber-risk commercial sector) rather than government procurement — these exporters have digital systems, cyber insurance mandates, and procurement processes that don't require SERCOP track record.”
Failure anatomy
Collapse type
Slow Death
🐌 LOW
Hype cycle
None
Moat type
Technology
Fatal mistake
Ecuador cybersecurity: BCE (Central Bank) used IMF technical assistance cybersecurity. ARCOTEL (telecom regulator) had mandatory CSIRT with US NIT-aligned standards. Petroecuador used Schlumberger cybersecurity. Major private companies used IBM Security and Fortinet resellers. Independent cybersecurity had no public procurement access (SERCOP required 3-year track record) and SME market lacked budgets.