Do I need SOC 2 as a startup?
You need SOC 2 the moment your first enterprise prospect asks for it. Most startups don't need it to sell to consumers or small businesses, but every mid-market+ B2B buyer will ask. SOC 2 Type 1 takes 6 weeks and costs around $15K in total.
Short answer: not yet — then urgently. If you sell to consumers or small businesses, you probably don't need SOC 2. If you sell to enterprise (anyone with a CISO, procurement team, or VRM process), you will be asked for it before your first contract closes.
Start with SOC 2 Type 1 (point-in-time audit). It takes about 6 weeks to prepare + 1-2 weeks for the audit. Total cost: $8K-$15K for a boutique auditor + $10-15K/year for a compliance platform like Vanta or Drata. Type 2 (3-12 month continuous audit) comes next.
The practical trigger is your first enterprise sales conversation. When procurement asks 'send us your SOC 2', you either have a report ready or you commit in writing to delivering one within 60-90 days. Many enterprise buyers accept the commitment letter.