SOC 2 Guide for Startup Founders
SOC 2 is a security audit standard. It proves you have controls in place to protect customer data. Big companies trust it. It’s not a law. It’s a business requirement that clients often ask for.
When a startup actually needs it
You don’t automatically need SOC 2 just because you exist. But you may need it when:
- A prospect says they won’t sign without it. That’s the most real “requirement.”
- You’re targeting enterprise or regulated customers (finance, health, government).
- You handle sensitive user data (PII, financial, health).
- Investors or partners want strong security proof.
If none of those are true yet, you can usually wait, or be minded to it as a need down the line.
What customers care about
Clients mostly want to know you’re serious about security.
Types of SOC 2
- Type 1 checks if controls are in place right now. It’s faster but weaker.
- Type 2 checks if controls work over time. This is what most enterprises want.
Costs & timeline
Expect:
- Type 1: a few weeks up to ~3 months
- Type 2: ~6–12 months of monitoring before audit
- Total cost can be vary for small startups.
How to approach it
- Talk to the customer. Ask which controls they care about.
- Sign the deal with a clause that you’ll get SOC 2 in X months. Some founders on Reddit use this tactic.
- Do a gap assessment. See what you already have vs what SOC 2 needs.
- Build controls and evidence. Policies, access logs, backups, security docs.
- Pick an auditor and start the audit process.
Things to keep in mind
- There’s no legal mandate for SOC 2. It’s a commercial standard.
- Many startups only start when they must to close deals.
- You can often manage SOC 2 without hiring full-time security staff.