• Mr. ByteChek

5 reasons why startups get SOC 2 Type 1

Updated: May 31



1. Close deals 🤝

By earning a SOC 2 Type 1 customers can quickly enable sales and unlock new business. SOC 2 is the de facto standard for B2B companies to build trust with prospective customers and other third parties. SOC 2 requirements are built into contracts and RFPs for enterprise companies so without this certification it becomes virtually impossible for companies to earn business and unlock new markets. Earning a SOC 2 Type 1 accelerates the deal process and allows companies to skip security questionnaires and demonstrate security to prospects and unlock new deals.







2. Put AICPA logo on their website 🔓

Upon completion of your SOC 2 Type 1 you can put the AICPA SOC logo on your website for marketing and sales purposes. This logo formally establishes that you have earned a SOC 2 by a third-party and signifies to potential customers that you take security seriously. This is the same logo you would put on your website when earning a SOC 2 Type 2.







3. Establish cybersecurity controls 🎛

The process of earning a SOC 2 Type 1 starts with a readiness assessment. During the readiness assessment your startup will learn what is required for SOC 2 and where you should focus remediation efforts. Remediation means fixing clear gaps for SOC 2 and establishing the future control set for your organization.


Think of the SOC 2 Type 1 process as the foundation for your future cybersecurity program. It’s important to get this right and build scalable security controls that can last beyond your current stage. Startups are always thinking about scaling and how to build practices that will last when they 10x, 20x their team. But what about security? Earning a SOC 2 Type 1 helps you establish your foundational security controls that should last through all growth stages.

4. Speed ⏱

You’re a startup, speed is all you know – why should your SOC 2 report be any different? You can optimize for a SOC 2 Type 2 which is the end goal for most companies pursuing a SOC 2 but that takes at least 6 months and, in most cases, longer.


The alternative is quickly getting the answers to the test through an automated readiness and earning a SOC 2 Type 1 in less than a month. You can go from “I need a SOC 2 to close this deal” to having the SOC logo and earning new business faster than it took you to close your last round of funding.

5. Learn and prepare for Type 2. 📝

A SOC 2 Type 2 tests whether your cybersecurity controls and practices are operating effectively over a period of time (6-12 months). This means that the controls you say are in place better be in place and being performed every single time. This is a huge undertaking for a lot of startups because most employees don’t know that the Type 2 is ongoing so the diligence and attention to detail required to earn a successful Type 2 is non-existent.


The risk here is that companies will go through a SOC 2 Type 2 without a Type 1 and their first report results in a ton of exceptions or deviations. Exceptions or deviations are not the end of the world, it just means that some controls weren’t operating effectively.


However, do you want the first report you ever give to your customers to be littered with exceptions? Or would you rather earn a report that shows you have controls established without exceptions and in exponentially less time?


A Type 1 helps you get a report out the door and also prepare your startup for the Type 2. Security and compliance require a mindset shift and startups that jump right into a Type 2 skip important steps that establish the security culture and mindset to establish a successful cybersecurity program.


Other related articles:

Everything and Anything You Need To Know About SOC 2 (bytechek.com)

SOC1, SOC2, & SOC3 – What’s the Difference? (bytechek.com)

3 Reasons why SaaS Start-Ups Should Prioritize SOC 2 Compliance (bytechek.com)