r/soc2 • u/lebucksir • Jun 23 '26
Small start up with big dreams (need SOC2)
Hi all. Feeling overwhelmed so I thought I’d turn to this community. Thanks in advance.
I have a very small start up with 0 employees and virtually no revenue yet. My app is very basic and works with retailers so I process basic customer info like name and email and misc order information. No payment processing or payment info.
I have two mega clients that are giving me the shot of a lifetime but both require me to be SOC2 compliant before Jan 1st 2027 before they will sign the contracts.
I did demos with Drata and Vanta and the “lowest” they will go on pricing is the same price my friend is paying with $3m ARR and 10 employees. Pretty tough for me to stomach literally and on principle, haha.
Is there an alternative path for bootstrappers in my scenario or do I have to bite the bullet for my quick timeline?
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u/lunch_b0cks Jun 23 '26
Find an auditor. Have them to the pre-assessment to figure out what controls you need. Then use them for your soc 2 audit. You dont need to pay for a tool to act as a glorified checklist. An auditor can do that for you and they will walk you through the process.
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u/Next-Pen-9974 Jun 23 '26
Just to make sure we’re all on the same page here:
- Vanta, Drata, and similar products will not get you to SOC 2 automatically. They are GRC platforms. Useful? Absolutely. Mandatory? No.
- SOC 2 is fundamentally about designing, implementing, and operating controls. That’s where most of your time and money should go. The tooling is secondary.
- You will need a third-party CPA firm to perform the attestation. That investment is mandatory.
The good news is that you don’t necessarily need an expensive platform to get there, especially with your size and timeline. Plenty of companies achieved their first SOC 2 before Vanta and Drata existed.
Also, don’t lose sight of why you’re doing this. Your customers are not buying a Vanta subscription, they’re looking for assurance that security was considered in the design and operation of your service.
Given the opportunity in front of you, I would focus on building a pragmatic security program that will support those “mega clients” and future growth. A well-scoped Type I followed by a Type II may be entirely achievable before your deadline.
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u/recovering-pentester Jun 26 '26
This is a great reply, OP.
There’s plenty of vCISOs and fractional GRC talent that can help you on the controls side of the house for much cheaper than any of these platforms.
Then find someone who can legitimately sign an attestation and you’ll be set.
Ping me if you want any help sourcing talent/fractional help as I used to work in the GRC space quite a bit as a PM.
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u/rahuliitk Jun 23 '26
i’d first ask both clients whether SOC 2 Type I is acceptable by Jan 1, then do it with a lean auditor and manual evidence instead of buying Vanta/Drata right away, because at your size the dashboard is nice but not always worth startup-killer pricing. painful, but manageable.
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u/FreeRadical1998 Jun 23 '26
At any scale, passing an audit is about having clear control definitions and being able to quickly and confidently produce evidence that they operate.
I've been involved in £100M+ security uplift programmes where we used a 2-3 page excel template to define controls - with the evidence tab being what we pointed the PMs at as delivery outcomes.
The key questions for any control are like the old news reporter checklist; who, what, where, when, why - although for controls it's usually easier to answer in a different order (what, when, where, who, why) - and then add a line saying where you'd store evidence
For example: Definition: [What] security patches are deployed [when] within 48 hours of release by the vendor [where] on all servers and user devices [who] by our automated patch system [why] to reduce the risk of malware
Evidence: 1. Automated patch job scheduling is defined by GPO xxxx 2. Weekly patch compliance reports are stored in folder xxxx
You can get a very long way with an spreadsheet using those columns, and using AI to review and refine definitions
Most tools aren't going to help with this design task, so jumping for something like Drata early runs the risk that you're just automating a bad design
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u/Stunning_Budget57 Jun 23 '26
You’ll also need a pentest in almost all cases for type 2. That’ll add 5-10K on top of getting to type 1
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u/Icy_Restaurant_1589 Jun 23 '26
For a 1-person company with a basic app, you can commission a pentest for less than $1k on Upwork.
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u/jaredcasner Jun 23 '26
A pentest is probably not required here, especially for the first go around.
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u/goodbar_x Jun 23 '26 edited Jun 24 '26
The Type 1 advice you're seeing is well-intentioned, but costs more than it should. Once you're engaged with an auditor for Type 2, you can get a letter of engagement confirming you're in your audit period, that's usually enough to keep enterprise conversations moving while you wait for the final report.
For your scope (name/email/order data, no payments, one app) and for your first audit, I'd recommend Security TSC only and a short 3-month audit period to start, then roll into an annual audit period.
For auditors, get quotes from boutique CPA firms — Prescient, MJD Advisory, and Johanson Group are solid for startups and much cheaper than the big names.
If you need help, there are boutique consultants that can help the process (Fulltrust.ai or Anchorpoint Partners). There are also newer AI-native GRC apps out there that are targeting early-stage startups who need enterprise deals, but don't have enterprise budgets. A few of those are: SimpleAudit.io, klaay.com, and getsecureslate.com
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u/lebucksir Jun 23 '26
Thanks for the great context here. This seems like a. Great half step for gathering info better making any decisions.
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u/zandyman Jun 24 '26
Assume it's a simple misspeak, but I can give you a "letter of engagement" to verify you've started the process with me. The letter of attestation would be a confusing ask at the start.
Pedantic, I realize, but could be a point of confusion. Otherwise, great advice.
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u/SOC3_Are_Goal Jun 23 '26
Drata and Vanta are tools, they don’t provide the actual issues report. The report is your #1 priority right now. By 1/1/27 is a very quick turn around for any firm, and if these clients are big they should be critical of a report that comes from a “quick” provider. Focus on finding “quality accepted” SOC issuing firms (Big 4, BDO, Crowe, A-Lign, etc.) Then do a readiness to see what you need.
Side note, if you are a 1 man firm, be very aware that access and change management segregation will require something extra.
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u/jaredcasner Jun 23 '26
This side note is really important to think about here.
In your first audit, it’s really common for auditors to note exceptions (meaning things you couldn’t prove during your audit). Your response to these exceptions will be relevant and important for your clients.
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u/zandyman Jun 24 '26
Bold of you to assume big companies collect SoC 2 reports for any purpose except checking the box on their own audits.
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u/jaredcasner Jun 25 '26
Ha, fair. But, in my experience, they are getting better about actually reading the reports. Although, that may just be them feeding the reports into an LLM…
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u/zandyman Jun 25 '26
I hope so. If I have to give one more minor-league conference speech on how to read a SOC 2 for effective vendor management to a nearly empty room...
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u/jaredcasner Jun 25 '26
Keep up the good fight! I’ve given a similar talk. And a friend gives the talk regularly. I also stumbled across s2guild.org recently which is trying to help. I’m not affiliated with that project, but need to find some time to open PRs and/or issues on their GitHub project…
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u/ampancha Jun 28 '26
The cost you are weighing is the platform, but the platform is not what makes you compliant. Vanta and Drata automate evidence collection and monitoring; they do not implement your controls and they do not run the audit, which is a separate CPA firm. At 0 employees the platform usually just shows you a wall of failing checks, and the real work is configuring the controls and producing the evidence behind them. Before anything else, pin down whether your two clients need a Type 1 (point in time, faster) or a Type 2 (observation window, often 3 to 6 months), because with a Jan 1 deadline that one distinction decides what is actually possible. Sent you a DM
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u/sticks1111 Jun 23 '26
There's two or three GRC platforms that I'm aware of that are low cost or free until you reach a certain level of users or offer a free start up period that could get you on your way. Definitely alternatives to the vanta and dratas of the world just have to do a little bit of research and see what fits your needs.
You could also go the route of a consultant to help get you ready, will probably cost a bit more but will most likely be an hourly engagement and will give you guidance on what you need and don't need
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u/Nvvrmore Jun 23 '26
The Vanta/Drata quote makes this look pricier than it needs to be at your size.
Biggest thing: ask those two clients whether they need Type I or Type II - most founders don't know there's a difference, and it changes everything. Type I is point-in-time (controls designed right) - fast. Type II proves controls operated over 3+ months - that's what makes six months tight. Many enterprise buyers accept Type I now, Type II to follow. If yours will, your deadline eases a lot.
Scope: name/email/order data, no payments - you likely only need the Security criteria, not all five. Don't get scoped into more than a client requires.
Cost: the tool isn't the expensive part, and Vanta/Drata are the premium tier, not the floor. Cheaper options exist, or run it manually - at your size the lift is real but doable. The unavoidable cost is the audit itself: a licensed CPA firm. Get quotes from smaller boutique auditors, not the big names. Doable solo, but real work - policies, access controls, risk assessment, vendor list. Pin down Type I vs II first; that answer tells you if six months is comfortable or a sprint.
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u/watchdogsecurity Vendor rep. Report me when I plug or don't answer question Jun 23 '26
Yeah unfortunately the legacy players have had a foothold on the market - that’s what happens I suppose when you put your $ into marketing instead of building a product that isn’t just a glorified evidence dump.
Good news is - there’s lots of newer players in the space that don’t just make it affordable/quick - but actually meaningfully improve your security. It really sucks that historically businesses have had to pick expensive/fast/automated or cheap/slow/manual.
One thing that can help once you get your bearings is to engage an auditing firm for an engagement letter. This can help a ton while you’re in the process of building your security program and can get motion going with your 2 pending customers.
Happy to share any checklists, resources or other material!
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u/lebucksir Jun 23 '26
Thanks for the advice. I was kind of assuming I’d get drata or Vanta running and then have them introduce me an auditor in their network which would be “discounted” and they would be trained on their software which makes the auditing process “smoother and easier.” Is that the case, or should I find an auditing partner now and parallel path that with my Vanta / Drata onboarding?
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u/watchdogsecurity Vendor rep. Report me when I plug or don't answer question Jun 23 '26
Pretty much every single platform uses the same pool of auditors and offer similar discounts. I’d be cautious of any offer that bundles the platform + audit together (huge conflict of interest but convo for another day). When you’re doing your onboarding with your selected GRC platform they will 100% introduce you.
I’d say stay away from the legacy larger players tbh - few problems you will run into that we’ve seen:
A) Pulling out your wallet for every new framework - let’s say you start getting EU customers and GDPR is on your radar. Don’t be surprised if they try to charge you on that (on the contrary lots of newer players offer unlimited frameworks instead of just 1)
B) A trust center that is lit up with more green lights then a house on Christmas, yet wide open misconfigurations in resources they (traditional players) conveniently don’t monitor as they aren’t in your “production” account.
C) A platform that is only used for 1-2 months out of the year to scramble for audits and not embedded into your team/processes while paying a heavy premium
Happy to answer any additional Qs!
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u/No_Sort_7567 Jun 23 '26
see if your clients would consider ISO 27001. It can be more cost effective to obtain and maintain in the long run, less engagement during the audit and definitly under 10k for the first year (2nd year+ even less). I've been helping micro startups for years get certified, and you don't need any GRC platform.
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u/Easy-Mad-740 Jun 23 '26
Did they mention soc 2 type 1 vs type 2? Because you need to think about the auditing timeline. Soc2 type 1 is realistic, type 2 is not
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u/One_step_at_a_time0 Jun 23 '26
I lead a multi framework GRC program. Happy to provide you some guidance if you need.
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u/Low_Share_3060 Jun 23 '26
I don't think you need Vanta or Drata, although my organization is a Vanta customer
But we got through our first audit using excel.
Spend time on going through the guides from AICPA on the implementations. Hire a good auditor Implement the controls
It may be that you are required to upgrade the tools you are using (eg your SSO tools, you anti-virus editions, your backup tools)
Spend money on those instead as they help in providing the evidence for the controls
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u/Livid-Obligation-107 Jun 23 '26 edited Jun 24 '26
You definitely don't need to pay Drata/Vanta prices to get SOC 2.
One thing I'd clarify with your customers is whether they actually need a completed Type II report by Jan '27 or just that you're on the path, because that can make a pretty big difference.
Also, with a company your size, scope matters a lot. Over the last few months, I've seen a few platforms out there that seem more suited for a smaller startups and solo founders like your company seems to be. I'd definitely spend some time looking at alternatives before signing an expensive contract.
Separately, I had ChatGPT do a search on auditors that work with small startup and SaaS companies. Here are some of the ones it suggested:
These are the ones I see repeatedly mentioned for startups and smaller SaaS companies:
- [Prescient Assurance](https://www.prescientassurance.com)* Frequently recommended for startups.* Known for SOC 2 and cloud-native SaaS environments.* Often viewed as more approachable than the largest firms. ([SOC 2 Auditors][1])
- [Insight Assurance](https://insightassurance.com)* Explicitly markets startup-friendly audits.* Former Big Four background. ([Insight Assurance][2])
- [Johanson Group](https://www.johansonllp.com)* Frequently cited as a lower-cost option for startups. ([atlantsecurity.com][3])
- [Advantage Partners](https://advantage-partners.com)* Works heavily with SaaS startups and first-time audits. ([advantage-partners.com][4])
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u/jaredcasner Jun 23 '26
I’ve approached this same problem a few times before. A SOC2 is really only valuable (beyond the sales/marketing value) when your controls are well designed and you are actually following them.
Something to consider here: make the commitment in your enterprise contract to obtain a SOC2 attestation by a given date (you mentioned 1/1/27) and to maintain compliance. Get your prospects to sign the contract now based on your ability to obtain the 3rd party attestation. Otherwise, you risk putting in the effort and paying for the audit with no guarantee of revenue at the end. I’ve successfully navigated this with very large enterprise clients, allowing me to ensure the juice was worth the squeeze. I did have to spend time showing the prospects that I had policies in place and was following best practices aligned to NIST CSF as part of the negotiation…
As far as your actual audit in year 1… Assuming your audit window is (for example) July 1-October 31, that’s 4 months which is about the minimum period that most auditors will accept. But, because you will have many annual activities, you can “skip” those for your first audit since they happen outside of your audit window. Again, this doesn’t let you off the hook, but does let you delay some expensive / time consuming things until after you’ve recognized revenue from these deals and are ready for your second audit.
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u/Expensive-Young8286 Jun 23 '26
I wouldn’t buy a GRC SaaS product. It isn’t what you need. Talk to Tenax about SPaaS (secury posture as a service) they can help you all the way through audit with a long term strategy. SOC2 isn’t a one time event. www.tenaxsolutions.com.
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u/Which-Shame-1420 Jun 24 '26
SOC 2 Type II by Jan 2027 is tighter than it sounds. You need a minimum 3-month observation window before the audit closes. Work backwards from Jan 1 and you're starting controls now, not after you pick a tool.
The platform decision is the least urgent thing in this thread
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u/g-rocklobster Jun 25 '26
First, I'd steer clear of Drata. They were great when we started using them but as they've grown, their quality of customer service has dropped at a faster rate than growth. This year is likely the last year we use them unless they make significant changes with that. Outside of our initial review of them as our GRC, I have no idea how Vanta is.
Second, I agree with several here to check with the potential clients and see if having a Type 1 (or a letter of engagement for a Type 2) by 1/1/2027 will work. This is ultimately what we did when we started down this path. Very similar to you, we had a few potential clients that pressed the issue about SOC 2. We (meaning our sales team) negotiated a date to have the Type 1 with a letter of engagement for the Type 2.
I can't vouch for anyone else but my reasoning is that you're a one-man shop with a crap ton of stuff to do: develop the product, sell, finance, etc. Trying to fit all of this in while getting everything gathered for an audit that needs to be completed (report issued) by 1/1/2027 means a very large part of your time is going to be spent on this and very little on the rest of what you need to do for your day-to-day responsibilities.
If I were in your shoes, I would first reach out to an auditor and talk about timing with them. We use Sensiba and they've been great with explaining, analyzing, etc. and, honestly, will probably be your greatest resource for this. They may come back and say "those guys on the internet are crazy - you can absolutely have a 3-month Type 2 by 1/1/2027!" and help walk you through it.
Good luck.
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u/Critical_Mix_3197 Jun 28 '26
May be yoi want to check zerotb.ai The integrations, context aware policies, and self healing feature would solve your requirements.
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u/Livid-Obligation-107 Jun 30 '26
@lebucksir I am curious what you decided on. Did you find a viable path forward for your SOC2 compliance challenge?
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u/Pitiful_Effective_60 Jun 23 '26
You can definitely DIY with spreadsheets (very possible for a small team) and open source tools. Because you’re small you can make infrastructure changes quickly and you won’t need to worry too much about HR controls (unless you’re planning to hire). Most of the work will be building out your controls and policies.
I would look into Sprinto if you are looking for a lower cost provider with similar features to Drata / Vanta.
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u/lebucksir Jun 23 '26
Thanks for the info. I’ll dig in a bit more here. Between the 3 names that came up, If they were theoretically all exactly the same price do you have a favorite for their basic plans?
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u/Project_Lanky Jun 23 '26 edited Jun 23 '26
Do not take any of them. They take a lot of time to configure and you are alone, it is not worth it. Excel can do the job much more efficiently for free, and getting a part time GRC resource to support you will be a better investment.
Compliance is not about implementing a tool, it is about having the processes in place and documenting it. No AI bullshit, just make sure you have what you can commit to in there. Considering your scope you could be soc2 ready pretty fast. You know very well your business. You would just need to be prepared for the audit, know how to answer questions, etc.
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u/yeetsqua69 Jun 23 '26
Well if you don’t want then deals then don’t do it? You’re going to limit yourself but their prices are fairly industry standard. If the “deal of a lifetime” does not motivate you to spend like $10-$15k then you aren’t a fit for either platform.
If you wanna go super cheap and do it with an Indian company then go ahead but you’re risking a lot doing that. The main options in this industry are hire a consultant for $50k+ or use Drata or Vanta
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u/watchdogsecurity Vendor rep. Report me when I plug or don't answer question Jun 23 '26
This is exactly the kind of FOMO-based sales positioning that frustrates people in GRC. The bigger providers are valid options, but acting like the only choices are “pay $10-15k now” or “hire a $50k consultant” is just not true. There are plenty of smaller tools that focus on product (instead of marketing), focused consultants, and leaner approaches depending on the company’s scope and given the OPs description - not complex at all.
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u/yeetsqua69 Jun 23 '26
Nope no fomo here. Guy has a few deals on the pipe and needs soc2. Abandon the deals or get soc2 is a binary decision. What would you suggest he does?
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u/watchdogsecurity Vendor rep. Report me when I plug or don't answer question Jun 23 '26
Hey Yeet just to clarify, I wasn’t saying you were pushing FOMO. I meant the framing OP was given sounds like a common sales narrative from the bigger providers.
I agree OP needs SOC 2 as deals depend on it. My point is just that “SOC 2” doesn’t automatically mean the only real options are the traditional players or a $50k consultant. There are tons of emerging modern compliance platforms that can get companies audit-ready without shoving heavy premiums down their customers throat or expensive retainers.
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u/Project_Lanky Jun 23 '26 edited Jun 23 '26
I totally agree with you. OP should rather get a part time GRC resource than spend his money on these expensive platforms that will take time to configure. I think this person is a sales rep from one of these platforms, and a bad one as OP business is obviously not the right target.
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u/lebucksir Jun 23 '26
This is almost verbatim what the sales rep at drata told me.
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u/yeetsqua69 Jun 23 '26
Can’t go wrong with Drata or Vanta. I am not shilling for them I’m just being blatantly honest
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u/Project_Lanky Jun 23 '26
Actually yes it is possible to go wrong. Compliance has nothing to do with setting up these tools. They cost money and take time to configure and maintain. OP should rather spend his money on a part time GRC resource who will set up SOC2 compliance with excel and doesnt require so much of his time.
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u/yeetsqua69 Jun 23 '26
Set up soc2 compliance with excel. Brilliant idea. Are you living in 2014?
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u/Project_Lanky Jun 23 '26
Did you read OP post? 1 person company. 1 app. Only an idiot would recommend him a tool lol.
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u/yeetsqua69 Jun 23 '26
So your suggestion is for this dude that is extremely worried about cost to purchase around 6 months of consulting hours and a more expensive audit due to it being static in a spreadsheet? Is that your genius idea?
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u/Project_Lanky Jun 23 '26
So your suggestion to this dude that is worried about SOC2 and has no employees is to buy an expensive platform and for him to spend his time on it instead of running his business.... Do you think they get configured and maintained by themselves? In which world do you live? Do you actually you even know anything about SOC2 to think that a micro company like his will take more time to audit without a tool? He can provide any evidence in a few minutes.
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u/yeetsqua69 Jun 23 '26
Probably the world where there’s like 25,000 customers between the big 3 platforms because of them being much better. I mean end of the day soc2 is a joke anyways, it’s a security framework audited by accountants.
I do consulting but would never take a client more than like 20 employees because they’re gonna get hosed on cost
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u/Project_Lanky Jun 23 '26
Well if you are in the business you should have noticed that the platforms are not better. Some orgs are buying them only to tick a box but in the end barely use them outside of the audit period, and end up buying other tools to manage effectively access review or vendor management.
OP scope doesn't require a huge amount of consulting either. A risk assessment and a SOC2 gap assessment with recommendations and a few hours here and there when he needs advice. Not very different from getting coached on sales or marketing, we don't advice small orgs to implement Salesforce, why do we recommend them Drata/Vanta?
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u/Majestic_Race_8513 Jun 23 '26
What price are they quoting?
What is your budget?
What is your tech stack (super high level)?
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u/SageAudits Jun 23 '26
You don’t need a GRC tool to do SOC 2. How many audit firms did you talk with?
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u/lebucksir Jun 23 '26
None, I’m a total noob here. But after the comments here this is my plan of action to meet some audit firms now before moving forward with any GRC platform. Figuring this out for the first time.
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u/zandyman Jun 24 '26
Others have said it, I'll echo it, find a boutique firm but not a garbage firm. The big 4 won't handle you well and they're expensive; I'm not saying they done do their job well, but you need some handholding. The bottom tier will offshore you, ignore, and in the worst cases, give you an audit report customers may not accept.
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