Data Privacy & Security — What Startups Must Handle Early

If your startup collects, stores, or processes personal data, you’re subject to privacy laws. Compliance (like GDPR, CCPA) and good security practices aren’t optional—they protect your business and customer trust.

Why it Matters

You don’t need to be GDPR-certified from Day 1, but collecting user data without clear policies and safeguards is a lawsuit (or PR disaster) waiting to happen. Investors will ask, and customers will care.

Founders Checklist

Post a clear privacy policy on your website or app
Only collect data you actually need — no hoarding
Use SSL, two-factor auth, and secure vendors
Avoid storing sensitive data (e.g. credit cards) unless PCI-compliant
Know where user data lives — and how to delete it if requested

Founder Fails

Had no privacy policy > lost deal with enterprise customer
Collected birthdates and SSNs for no reason > increased liability
Used personal Gmail for user feedback > security breach risk

When to ask for Help

Before collecting user data or launching your product
If expanding to new markets with stricter privacy laws
When drafting a privacy policy, terms of use, or consent flows
After a data breach or if users request data deletion
When handling sensitive information like health or education data

Frequently Asked Questions

Q: Do we need a privacy policy even if we’re not selling anything yet?
A: Yes. If you're collecting emails, names, or usage data, you must inform users how it’s stored, used, and shared — legally and ethically.

Q: What laws apply to us?
A:

GDPR if you have EU users
CCPA (California Consumer Privacy Act) if you have California users
Other state and international laws may apply as you grow

Q: What if we use tools like Segment, Stripe, or Firebase?
A: You still need to disclose how third-party tools collect data. Many policies include these in a “Service Providers” section.