SOC 2 for Startups: A Practical Guide

Key Takeaways

Point	Summary
Startup-friendly	SOC 2 is achievable for organizations of all sizes, including early-stage startups
Cost range	€10,000-50,000 depending on scope, complexity, and approach
Timeline	4.5-6 months from kickoff to Type 2 report
Prerequisites	Environment separation, database encryption, MFA on cloud admin, deployment process
Type 2 recommended	Going directly to Type 2 typically provides better value than starting with Type 1

Quick Answer: Startups can achieve SOC 2 Type 2 in 4.5-6 months. The investment depends on your organization's size and complexity. A managed service approach can minimize the time burden on your team.

The Startup Reality

When Startups Actually Need SOC 2

Watch for these signals:

Signal	Time to Act
Security questionnaires becoming regular	Now
Recurring questions about pen testing	Now
Requests for information security policies	Now
Lost a deal to a compliant competitor	Definitely now
Generating answers to security questions with ChatGPT	You're late

For sensitive data (healthcare, financial services): Start as early as possible. The type of data you handle matters.

When Startups Can Wait

• No customers asking yet
• Pre-revenue, no customer data in production
• Tech stack is unstable (major migrations planned)
• Pure B2C or SMB customers who don't require attestation reports

But even if you're waiting: The earlier you build security practices, the cheaper and easier compliance becomes later.

The Value of Managed Services for Startups

With a managed service approach, your team's involvement is focused on the work that only you can do (implementing controls in your specific environment) while compliance expertise is handled by your partner.

A managed service brings additional hands to handle:

• Policy documentation tailored to your organization
• Evidence collection setup
• Auditor coordination
• Ongoing compliance monitoring

This ensures things are done correctly the first time, avoiding costly iterations and rework that can extend timelines and increase costs.

Consider Going Directly to Type 2

While some guidance suggests starting with Type 1 then progressing to Type 2, many startups find value in pursuing Type 2 directly.

Why Type 2 often makes more sense:

• Type 1 is a point-in-time snapshot; Type 2 demonstrates controls working over time
• Enterprise customers typically prefer Type 2
• The timeline for Type 2 isn't much longer when you factor in eventual Type 2 pursuit anyway
• "Audit in progress" letters can support sales conversations during the observation period

A typical path:

1. Implement controls (6-8 weeks)
2. Start observation period
3. Use audit documentation for sales conversations
4. Receive Type 2 report in 4.5-6 months total

See our Type 1 vs Type 2 guide for more details.

Technical Prerequisites

Before starting SOC 2, you need these fundamentals in place:

Requirement	What It Means	Why It Matters
Environment separation	Dev, staging, prod are separate	Production data can't touch other environments
Database encryption	Production DBs encrypted at rest	Customer data protection
MFA on cloud admin	MFA on AWS/GCP/Azure root accounts	Access control baseline
Deployment process	Some form of CI/CD or release process	Auditable change management

If you're missing these, fix them before starting compliance. They're harder to remediate mid-audit.

Supabase, Firebase, and Similar Platforms

You can absolutely obtain a SOC 2 report while using Supabase in Year 1. It's not a blocker.

However, Supabase struggles with environment separation. Plan your migration:

• Year 1: Achievable as-is
• Month 18: Migrate before POC customers convert to production

During pilots, data resets are easy. Post-production, migration costs explode.

The Startup Tech Stack for SOC 2

What Helps

Technology	Why It Helps
AWS/GCP/Azure	Well-documented, auditor-familiar, good compliance integrations
Terraform/Pulumi	Infrastructure as code = auditable, repeatable deployments
GitHub Actions	Built-in audit trail, branch protection, code review
Modern identity (Okta, Google Workspace)	SSO, MFA, automated offboarding

What Creates Challenges

Technology	Challenge	Workaround
Supabase/Firebase	Environment separation	Documented migration plan
Hetzner	No standard integrations	Manual evidence (screenshots)
Self-hosted infra	More documentation needed	Infrastructure as code
Multi-cloud chaos	Complex scoping	Pragmatic justification

The Scaleway/OVH Advantage (for French startups)

If you're using French cloud providers, we have deeper integrations than most platforms:

• Full security testing (not just user permissions)
• Automated evidence collection
• Configuration verification

70% of our clients are French-based, so we've built integrations competitors don't have.

Common Startup Mistakes

Mistake 1: Waiting Until a Deal Depends On It

The problem: "We need SOC 2 in 6 weeks to close this deal."

Reality: SOC 2 Type 2 takes 4.5-6 months minimum. The 3-month observation period cannot be compressed.

The fix: Start 4-5 months before you need it. If enterprise sales are in your near future, start now.

Mistake 2: Over-Scoping Year 1

The problem: Including all Trust Services Criteria "just in case."

Reality: More scope = more work + more cost + same timeline.

The fix: Start with Security only. Add Availability only if you have SLAs. Add other criteria when customers specifically request them.

Mistake 3: DIY Without Expertise

The problem: "We'll buy Vanta and figure it out ourselves."

Reality:

• Significant time investment learning the framework
• 9-12 months to get certified (vs 4.5-6 months with experienced guidance)
• Risk of audit delays from mistakes
• Still need pen test, audit coordination separately

The fix: A managed service approach brings additional hands to handle the compliance work, ensuring things are done correctly the first time and avoiding costly iterations that extend timelines.

Mistake 4: Building Everything Before Audit

The problem: Trying to have perfect security before starting the SOC 2 process.

Reality: SOC 2 allows showing progression in Year 1. You can note some controls are "in implementation" and commit to Year 2 completion.

The fix: Start the process, implement as you go, document your roadmap.

Mistake 5: Treating SOC 2 as a One-Time Project

The problem: Controls degrade after the audit, scramble at renewal.

Reality: SOC 2 is annual. You need to maintain compliance year-round.

The fix: Continuous monitoring, automated evidence collection, build compliance into operations.

The Startup SOC 2 Timeline

Realistic Timeline: 4.5-6 Months

Week 1-2: Kickoff + Gap Assessment

• Understand your stack
• Identify gaps
• Define scope

Week 3-6: Implementation

• Environment separation (if needed)
• Policies deployed (written for you)
• Security tools deployed
• Team training
• Penetration test

Week 7-8: Audit Launch

• Evidence collection automated
• Observation period begins

Month 3-5: Observation Period

• You: Continue normal operations
• We: Monitor for issues
• Auditor: Can sample any evidence

Month 5-6: Report Generation

• Final SOC 2 Type 2 report issued

During Observation: "In-Progress" Letters

You don't have to wait 4.5 months to show clients something.

Once the audit begins, you can get letters stating:

• You've engaged in SOC 2 audit process
• List of all security controls being audited
• Estimated completion date
• "So far so good" assessment

Enterprise clients rarely block on "not yet certified" when they can see real auditor engagement and a 2-3 month completion estimate.

Understanding Startup Costs

What Drives the Investment

The cost of SOC 2 for startups depends on several factors:

Factor	Impact on Cost
Scope	More Trust Services Criteria = higher complexity
Company size	Larger organizations have more systems to include
Technical setup	Complex or legacy environments require more work
Approach	Managed services vs. self-directed with platform

The typical range for startups is €10,000-50,000, with smaller, cloud-native organizations at the lower end.

Considering the Business Case

For startups pursuing enterprise customers, SOC 2 can pay for itself through:

• Access to deals that require compliance
• Shorter security review cycles
• Competitive positioning against larger vendors

Many organizations find that a single significant enterprise contract can justify the compliance investment.

Fundraising + SOC 2

Can You Start During Fundraising?

Yes. Many Series A/B companies certify while fundraising.

With a managed service approach, the work on your end is distributed over 6-8 weeks, not concentrated. The key is having one person as point of contact who can coordinate.

Flexible Options

• Sign now, pay at kickoff: Contract executed, payment starts when you're ready
• Start Q1 after closing: Get engagement letter immediately for sales use
• Monthly payments: Spread cost across 12 months

SOC 2 actually shows operational maturity to investors. It's a positive signal.

Working with External Dev Teams

If you have an external development team (studio, contractor):

• Invite them to 30-minute kickoff call
• Add them to dedicated Slack channel
• Direct communication between compliance partner and dev team
• Clear scope definition (what's on them vs what's on you vs what's handled for you)

The security engineer reviews their work:

• Ensures correct implementation from security standpoint
• Ensures correct documentation for auditors
• No useless back-and-forth, everything done right first time

What Enterprise Clients Actually Look For

Must-Haves

Requirement	Notes
SOC 2 report	Type 2 preferred, Type 1 accepted initially
Recent	Within last 12 months
Security criterion	At minimum
Pen test included	70-80% ask regardless of SOC 2

What They Check For

• No critical exceptions
• Penetration test conducted
• MDM deployed
• Vulnerability scanning active
• Security awareness training completed
• Incident response process documented

Even with SOC 2, clients will ask if you have these things. Make sure your SOC 2 scope includes what they'll ask for anyway.

The Trust Center

A Trust Center lets clients:

• Download your SOC 2 report (NDA protected)
• See security controls at a glance
• Answer basic questions without bothering you

For startups, this is huge for reducing security questionnaire burden.

The Bastion Approach for Startups

Built for Growing Companies

We work with many startups pursuing SOC 2, and we've built our approach around what works for companies at this stage:

• Efficient timeline: Type 2 in 4.5-6 months
• Managed service: We bring additional hands to handle the compliance work
• Right the first time: Ensuring things are done correctly to avoid rework
• Comprehensive: Penetration testing, audit, tools, and documentation included

What's Included

• Compliance automation platform
• Dedicated security engineer
• Policies tailored to your organization
• Penetration testing
• MDM and endpoint security
• Security awareness training
• External audit coordination
• Continuous monitoring

The Managed Service Value

Our approach brings additional resources to handle the heavy lifting, ensuring things are done correctly the first time and avoiding costly iterations that can extend timelines and budgets.

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Questions about SOC 2 for your startup? Talk to our team

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Sources

• AICPA SOC Suite of Services - Official SOC 2 framework overview
• AICPA Trust Services Criteria - Control objectives for SOC 2 engagements