Venture capital Accel backs Indian cybersecurity startups to chase innovation over pricing power

Venture capital firm Accel is encouraging India’s cybersecurity startups to aim for smarter products and not rely on being the cheaper alternative in order to compete globally. Prayank Swaroop, Partner at Accel added that the firm has lined up a Cybersecurity Summit and believes the next generation of global cybersecurity giants could come from India, provided founders embrace innovation over imitation.

“Customers choose what works, not what’s cheap,” said Swaroop. “In cybersecurity, price is not the differentiator, performance and innovation are.”

Accel has backed six cybersecurity startups, including Akto and Seezo, which are finding interest globally for their AI-native, differentiated products. Akto launched its agentic AI-based security tool earlier this year and has already bagged orders from three Fortune 100 clients. Swaroop credits this success to the founder’s patience and long-term thinking. “It took over three years to build, and only then did it scale quickly,” said Prayank Swaroop.

Legacy Defences

Recent security breaches have underlined the degree of sophistication in cyberattacks. A recent report by Kaspersky said some cyber attackers are even exploiting Google Forms to impersonate as crypto exchanges and trick users into paying fake commission fees. The scam bypasses spam filters by using legitimate Google infrastructure, showing how easily trust can be manipulated.

This growing complexity is exactly where AI-native security solutions are gaining traction, a sweet spot where Indian startups can now compete globally.

Mid  and large-sized enterprises worldwide are also grappling with fragmented security architectures amid rising attempts at security breaches. According to Barracuda Networks’ 2025 MSP Customer Insights report, 73 percent of global organisations, and nearly all surveyed companies in India rely on Managed Service Providers (MSPs) for 24/7 cybersecurity coverage.

The companies are willing to pay extra, with 92 percent organisations globally open to spending up to 25 percent more for robust, AI-integrated security support.

However, there’s a catch, loyalty is fragile. 55 percent of Indian customers said they would switch providers if a breach occurs, and nearly half globally would leave an MSP that couldn’t demonstrate round-the-clock support capabilities.

A Tectonic Shift

For Accel, the way forward involves not just building IP, but also helping Indian founders embed themselves into global security conversations. Swaroop said the venture capital is organising a cybersecurity summit in the US next year to help Indian startups connect with American CISOs and buyers.

Accel’s Prayank Swaroop said success starts with the mindset, first. “Founders should not short-stage themselves… They should think big. Are you building a $10 million business — or a billion-dollar one?”