If your team is trying to break into enterprise accounts, you will get this question in the first security review: Do you have ISO 27001 or SOC 2? Both are powerful trust signals. Both can unlock deals. They are not the same, and the order you choose affects time-to-revenue, internal effort, and how your security program matures.
This guide gives you a clear, startup-focused answer. We will explain each framework in practical terms, compare time and cost, show where they overlap, and give you concrete decision rules tied to your go-to-market. We will also cover how to pursue both with shared evidence, so you do not duplicate work.
Quick Answer
Sell mainly to U.S. companies and need a fast sales unlock: Start with SOC 2 (Type I, then Type II).
Sell globally or operate in regulated industries: Start with ISO 27001.
Selling across regions or moving upmarket quickly: Do both, in a staged plan that reuses controls and evidence.
What SOC 2 Actually Is
SOC 2 is a security attestation report issued by a licensed CPA firm under the American Institute of Certified Public Accountants (AICPA). It evaluates how you protect customer data against the Trust Services Criteria:
- Security (required)
- Availability
- Processing Integrity
- Confidentiality
- Privacy
You choose which criteria apply. The output is a formal report that buyers and auditors can read. There are two flavors:
- •Type I checks whether controls are suitably designed at a point in time.
- •Type II checks whether those controls operate effectively over a period, usually 3 to 12 months.
Where SOC 2 Shines:
- •It is the default request in U.S. enterprise procurement, especially for SaaS and cloud.
- •It is flexible. You include only relevant criteria and controls.
- •Type I can be achieved quickly, then you graduate to Type II without redoing everything.
Tradeoffs:
- •Recognition is strongest in North America. Outside the U.S., some buyers will prefer ISO 27001.
- •It is an attestation report, not a certificate.
- •Type II requires continuous evidence across the audit window, which is heavier on process and documentation.
Time and Cost:
- •Type I: Commonly 1 to 2 months of prep for a ready team, then the audit. Typical audit fees are about $10,000 to $20,000 USD.
- •Type II: Add 3 to 12 months of operating period plus auditor testing. Typical audit fees are about $30,000 to $60,000 USD, depending on scope and complexity.
- •Expect annual renewals to keep reports current for procurement.
What ISO 27001 Actually Is
ISO/IEC 27001 is the international standard for building and running an Information Security Management System (ISMS). It is a full governance system for security across people, process, and technology.
To certify, you define scope, run a formal risk assessment and treatment plan, implement controls, operate the ISMS, and pass a two-stage audit conducted by an accredited certification body. The 2022 update reduced and reorganized the control set to 93 Annex A controls grouped into organizational, people, physical, and technological themes.
Where ISO 27001 Shines:
- •It is globally recognized by enterprises and regulators, especially in Europe and Asia.
- •It creates a durable foundation for related standards like ISO 27017 for cloud and ISO 27701 for privacy.
- •It demonstrates that security is managed as a continuous system, not a one-time checklist.
Tradeoffs:
- •Heavier lift for a young company, since it requires a full ISMS with internal audits and management reviews.
- •Documentation and process rigor are non-negotiable.
- •U.S.-only buyers might still ask for SOC 2 even if you hold ISO 27001.
Time and Cost:
- •Typical path to certification is 3 to 6 months for small to mid-sized teams with good focus.
- •Certification audit fees are often $10,000 to $50,000 USD, based on scope and size.
- •The certificate is valid for three years with annual surveillance audits and a re-certification at year three.
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Side-by-Side Comparison
| Dimension | SOC 2 | ISO 27001 |
|---|---|---|
| Nature of assurance | Attestation report by a CPA firm | Certificate by an accredited body |
| Recognition | Strongest in U.S. enterprise | Global recognition across regions and sectors |
| Scope | Your selected Trust Services Criteria | Full ISMS with risk management and controls |
| Flexibility | You choose TSCs beyond Security | You can exclude controls, but must justify in the Statement of Applicability |
| Output cadence | Annual report, Type I or Type II | Three-year certificate with annual surveillance |
| Time to first result | Faster if Type I | Longer, but builds durable governance |
| Best first move | U.S. go-to-market and fast enterprise deals | Global markets, regulators, and long-term maturity |
Which Should Your Startup Do First?
Use your pipeline and buyer geography to decide. The fastest way to avoid stalled deals is to give buyers the proof they expect most.
Choose SOC 2 First If:
- Your pipeline is mostly U.S. enterprise and mid-market tech.
- Your team wants a quick win with a credible report.
- You need a sales accelerator in the next quarter.
- You want to start with Security and add Availability or Confidentiality later.
Choose ISO 27001 First If:
- You are selling into Europe, Asia, or global brands.
- You operate in regulated sectors where formal management systems carry weight.
- You want a long-term governance foundation that scales with headcount and geography.
- Your leadership is ready to invest in a full ISMS now.
Choose Both If:
- You sell across the U.S. and international markets.
- You want to stand out in bigger RFPs and cut risk in security questionnaires.
- You need to satisfy both procurement cultures without delay.
- You can sequence them intelligently to reuse controls and evidence.
How to Sequence Both Without Doubling Work
Both frameworks demand real security. You will see common threads across access control, change management, incident response, vendor oversight, encryption, vulnerability management, log monitoring, and governance. If you design your controls well, you can reuse most evidence across both frameworks.
- Define a single control catalog that references both ISO Annex A and SOC 2 TSCs.
- Write policies once with sections that clearly map to both frameworks.
- Centralize evidence collection from cloud, IAM, device management, code repos, and ticketing.
- Automate recurring checks for user access, encryption, logging, vulnerability scans, backups, and change approvals.
- Run internal audits that test control design and operation against both standards.
- Schedule audits strategically so that SOC 2 Type II observation overlaps useful ISO windows, reducing scramble.
This approach gives you speed for SOC 2 while laying down the process rigor ISO 27001 expects.
Common Mistakes That Slow Teams Down
Treating it as a documentation project. Auditors test real settings, not just policies. Align the two.
Skipping change management and access reviews. These are high-impact tests across both frameworks.
Letting vendors slide. Weak vendor oversight shows up in both ISO and SOC 2 findings.
Starting without owners. Every control needs a single responsible person and a fallback.
Waiting to automate. Manual screenshots and spreadsheets will burn weeks and introduce errors.
Final Recommendation
Choose SOC 2 first if your growth depends on closing U.S. enterprise logos in the next one or two quarters. It is faster to land, flexible on scope, and speaks the language of American procurement.
Choose ISO 27001 first if you are selling across regions or into regulated sectors and you want a durable, global certificate that anchors your security program for years.
Plan for both if your pipeline is mixed or you are moving upmarket aggressively. The overlap is large enough that a single, well-designed control set can serve both with minimal extra work.
Compliance is not just about passing an audit. It is how you prove to customers, partners, and investors that you operate with discipline and can be trusted with their data. Pick the framework that opens doors right now, then build toward the one that cements your credibility long term.
The Fastest Path for Startups That Need ISO 27001 or SOC 2
If your goal is to ramp up quickly and convert security reviews into signed deals, Smartly is built for you.
- Fast: Go from zero to audit-ready in as little as 30 days with automation doing the heavy lifting.
- All-inclusive: You pay to get certified, not for endless consulting hours along the way.
- Startup-friendly: Transparent pricing that fits tight budgets while you scale.
- Dual-ready: Shared controls and evidence for ISO 27001 and SOC 2 so you can pursue both without doubling effort.
Security proof should accelerate growth, not slow it. Smartly makes compliance clear, fast, and repeatable, so your team can focus on building the product and closing the next customer.