.png){kind=logo}
What SOC 2 Type 2 actually costs a startup
Notes from getting ThreeV SOC 2 Type 2 certified: whether you should go for it, what to budget, when to start, and why the controls have to keep working after the badge arrives.
This post previously appeared on LinkedIn.
What I love about startups and smaller companies is you get to wear many hats. Over the past months I've worn my CISO hat, working to get ThreeV Technologies Inc. SOC 2 Type 2 certified. For other entrepreneurs out there some thoughts.
Should you go for it?
If you sell B2B SaaS into regulated industries, yes. ThreeV serves utility customers so SOC 2 is not really optional. If you sell to SMBs or into unregulated markets do not burn your cash chasing a badge no one is asking for.
Budget more time than money
Costs include a compliance platform (we use Vanta), professional services fees if you have a firm helping you (we used BD Emerson), and auditor fees. There may be additional upgrades to existing software needed as well. Honestly plan for 50K-120K+ unless you are shoe stringing it.
Expect real hours from engineering, ops, and leadership. Type 2 requires you to prove controls work over a monitoring period, so it is months of discipline.
When?
Start when you can see SOC 2 is blocking revenue. Chasing it too early wastes runway. The line of sight to revenue needs to be 6+ months due to the audit window.
After the badge
You need to renew annually so factor that into ongoing considerations. Your controls must work. Doing the work daily rather than letting it all slide until an audit is much better than a costly fire drill. Assign a clear owner.
Happy to chat with any founder going through it.