Acquiring SOC 2 compliance is critical for early-stage startups as well, because with SOC 2 compliance they can avoid the potential loss of business. The process of getting SOC 2 compliance isn’t easy, but you can achieve SOC 2 compliance faster with SOCLY.io.

However, our world has gone online, and with that, our data has also gone online. With this shift, the risk of data falling into the wrong hands has risen exponentially.

Talking about a recent data breach that took place in June 2021, LinkedIn saw a breach involving the sale of personal data such as names, emails, geolocation, and more, belonging to nearly 700 million users, on a Dark Web forum.

However, such security threats not only exist for individuals, but they also exist for enterprises, especially those working with third-party vendors. Just imagine what could happen if third-party vendors mishandle data and enterprises become vulnerable to serious security issues such as theft of proprietary secrets or intellectual property, extortion, and the installation of malware and viruses.

Hence, no company wants to take information security lightly, and therefore no company will want to work with a service provider that cannot guarantee the safety of their customers’ data.

SOC 2 is an auditing framework and a voluntary compliance standard that is applicable to SaaS and other technology service companies, i.e., companies that store clients’ data in the cloud.

This framework has been developed by the American Institute of CPAs, and it defines a set of criteria for safely and effectively managing data. This benchmark is also accepted globally.

In fact, a company that is SOC 2 compliant ensures that the controls and practices it follows protect the privacy as well as the security of customer data. As a result, such companies earn not only business but also the trust of their client organizations.

Why Should a Startup Be SOC 2 Compliant?

When you’re building a startup, you already have a lot of work to do and many responsibilities to fulfill, i.e., from hiring the right candidates to finding the perfect product-market fit while accelerating growth.

At the same time, you might be wondering whether acquiring SOC 2 compliance is critical at such an early stage.

The answer to this question is “yes,” it is critical for startups. Below are the reasons why SOC 2 compliance is critical.

Demand:

Customers require SOC 2 compliance so they can trust you with their data. Enterprise-level clients will often work with you only if you properly address their security concerns. Hence, you could lose prospective customers and significant business opportunities if you’re not SOC 2 compliant. Similarly, you can scale your revenue and growth faster by attracting potential clients through SOC 2 compliance.

Reputation:

SOC 2 compliance demonstrates accountability and strengthens reputation. At a time when the U.S. reported its highest number of data breaches in 2021, it is evident how data breaches can erode trust and cause a company’s reputation to vanish quickly. Such incidents may also result in significant legal issues and high remediation costs. Therefore, no company wants to risk this damage by working with a non-SOC 2–compliant vendor.

Security:

SOC 2 compliance at an early stage of a startup helps organizations establish a security-first culture. Just think about your development team that is building a more secure product, and at the same time, your marketing team will be complying with various data privacy laws. In fact, your IT team will also be ensuring the security of all your systems, i.e., right from the get-go. However, the best part is that you will save a lot of time and money because you’re preemptively dealing with security threats and are not required to address them later after the damage has been done.

What Kind of Startups Need SOC 2 Compliance?

Startups that provide technology services such as B2B SaaS or cloud computing should invest in SOC 2 compliance. Although SOC 2 compliance is not legally mandatory, it is advantageous and often essential, based on the reasons mentioned above.

How Can Your Organization Achieve SOC 2 Compliance in the Least Time Possible?

Achieving SOC 2 compliance may generally take anywhere between two weeks and a month once the audit is complete, and the preparation phase for achieving SOC 2 compliance is even longer than this, depending upon the nature as well as the scope of compliance you opt for. However, you can decrease this time by following the below-mentioned steps:

• Identify the type and scope of SOC 2 compliance
  
  
• Choose a compliance platform that helps automate compliance processes
  
  
• Sign up with an audit partner
  
  
• Conduct an internal risk assessment
  
  
• Establish robust security within your organizational structure
  
  
• Achieve audit readiness by closing security gaps
  
  
• Write your SOC 2 system description
  
  
• Receive your SOC 2 audit report
  
  

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