SOC 2 for startups

Most startups pursue SOC 2 because an enterprise customer asks for it. Published sources put year one at roughly $25,000–$60,000 and about 8–12 weeks to a first Type 1 report. Here's where those numbers come from and what to do first.

When a startup actually needs SOC 2

BD Emerson, a security consultancy with an attest practice, says the usual trigger is an enterprise deal. A prospect sends a security questionnaire or puts SOC 2 in the contract, commonly on contracts of $50,000 or more a year (source). If you don't have one of those deals yet, you can usually get by with a security page, policies and answers to questionnaires.

When the deal arrives, BD Emerson suggests keeping it alive while you work toward the report: show the prospect a signed auditor engagement letter, a completed questionnaire, your policies under NDA, a recent pentest, a trust page and a dated commitment to a Type 2 (source).

What SOC 2 costs a startup in year one

ItemPublished rangeSource
SOC 2 Type 1 audit$7,000–$15,000BD Emerson (10–50 person startup) [source]
SOC 2 Type 2 audit (3-month window)$12,000–$25,000BD Emerson [source]
SOC 2 Type 2 audit, small/midsize company$12,000–$20,000Drata [source]
Compliance automation platform$8,000–$15,000/yrBD Emerson [source]
Penetration test$8,000–$15,000BD Emerson [source]
Readiness consulting (optional)$5,000–$20,000BD Emerson [source]
Internal team time100–200 hoursBD Emerson [source]
Total, year one$25,000–$60,000 + internal hoursBD Emerson [source]
Total, year one (typical startup)"Most startups spend $25,000–$50,000"Drata [source]
Annual maintenance after year one$15,000–$40,000/yrDrata [source]

Drata's worked examples estimate about $28,000 in year one for a 25-person company and about $75,000 for a 100-person company (source). Workstreet, a compliance services firm, puts SMB Type 1 audits at $5,000–$20,000 and pentests at $10,000–$15,000 (source). These are vendor and consultancy estimates, not quotes. The full breakdown is in the SOC 2 audit cost guide.

A 12-week plan to a Type 1

This sequence follows BD Emerson's startup timeline (source). It assumes a small, cloud-native team with no major gaps.

WhenWhat
Weeks 1–2Scope: pick Trust Services Criteria (Security is required; add others only if customers ask), systems and people in scope; choose Type 1 or Type 2
Weeks 3–6Remediate the gaps auditors flag most: MFA/SSO everywhere, documented offboarding, access reviews, change management
Weeks 4–8Write and approve policies; collect evidence (a compliance platform automates much of this)
Weeks 6–10Readiness assessment; engage the audit firm
Weeks 10–12Type 1 audit (point in time)
Months 3–6Type 2 observation window, then fieldwork and report

BD Emerson says a startup can typically reach a Type 1 in 8–12 weeks and a first Type 2 in 4–6 months. Scrut calls a 3-month observation window the practical floor and says 6 months is common for a first Type 2 (source). More detail: how long SOC 2 takes · Type 1 vs Type 2 · SOC 2 compliance checklist.

Software: do you need a platform?

It's not required, but it replaces much of the manual evidence work. Published entry prices:

Compare: SOC 2 software for early-stage startups · Vanta vs Drata · Vanta vs Secureframe · Drata vs Secureframe · Vanta pricing · Drata pricing · Secureframe pricing.

Picking the auditor

Only a licensed CPA firm can issue a SOC 2 report (Linford & Co). You can check a firm's peer review status in the AICPA peer review public file. BD Emerson lists choosing the cheapest auditor as a common startup mistake, along with overscoping, under-using the platform and treating SOC 2 as a one-time project (source). See how to choose a SOC 2 auditor and the auditor directory.

Ways to keep the cost down

Frequently asked questions

When does a startup need SOC 2?

Usually when a sales deal needs it. BD Emerson says the trigger is typically an enterprise prospect's security questionnaire or contract requirement, commonly on contracts of $50,000+ a year. Many startups wait until a deal is on the table.

How much does SOC 2 cost a startup?

BD Emerson puts year one for a 10–50 person startup at $25,000–$60,000 plus 100–200 internal hours. Drata says most startups spend $25,000–$50,000 in year one. Both figures cover audit, software, pentest and optional consulting.

Type 1 or Type 2 first?

A Type 1 is faster (BD Emerson: about 8–12 weeks) and can unblock a deal. Drata notes that enterprise buyers increasingly expect a Type 2, which requires an observation period of 3–12 months. Many startups get a Type 1 and then a Type 2 with a short first window.

Do I need compliance software?

No, but most startups use it. Without it, evidence collection is manual, so expect more internal hours or consulting fees. Published entry prices start at $7,500/yr on Secureframe's pricing page. Vanta and Drata list theirs on AWS Marketplace.

Who can issue a SOC 2 report?

Only a licensed CPA firm. Linford & Co notes that reports not issued by a CPA firm should not be relied on. You can check a firm's peer review status in the AICPA public file.

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Last verified 2026-10-28. Ranges are published estimates from the linked sources, not quotes.