ISO 27001 vs SOC 2: Which Framework Does Your Startup Need?
You're sitting in a deal review and the prospect says, "We need to see your ISO 27001 certification." Or maybe they asked for SOC 2. Or both. If you're confused about which one you actually need, you're not alone.
Here's the honest breakdown.
The 30-Second Answer
- Selling to US companies? → Start with SOC 2
- Selling to European/international companies? → Start with ISO 27001
- Enterprise deals worldwide? → You'll eventually need both
What's Actually Different?
SOC 2
SOC 2 is an audit report produced by a CPA firm. It evaluates your controls against the AICPA's Trust Service Criteria.
- Geography: Primarily North American
- Output: An auditor's report (Type I or Type II)
- Who audits: CPA firms (must be AICPA-accredited)
- Scope: You define it (flexible)
- Renewal: Annual audit
- Cost: $20k–$80k total
ISO 27001
ISO 27001 is a certification issued by an accredited certification body. It evaluates your Information Security Management System (ISMS).
- Geography: Global (especially EU, APAC)
- Output: A certificate (valid 3 years with annual surveillance audits)
- Who audits: Accredited certification bodies (UKAS, ANAB, etc.)
- Scope: Requires a formal ISMS
- Renewal: 3-year cycle with annual surveillance
- Cost: $30k–$100k total
Side-by-Side Comparison
| Aspect | SOC 2 | ISO 27001 |
|---|---|---|
| Type | Audit report | Certification |
| Standard | AICPA TSC | ISO/IEC 27001:2022 |
| Controls | Flexible (you choose) | 93 controls in Annex A |
| Risk assessment | Not required | Mandatory |
| Documentation | Moderate | Heavy (ISMS required) |
| Timeline | 3–6 months (Type II observation) | 6–12 months |
| Ongoing effort | Annual re-audit | Surveillance audits + continuous improvement |
| Market | US SaaS buyers | Global enterprises, government |
The Overlap Is Huge
Here's what most people don't realize: 70–80% of the controls overlap. If you've done SOC 2, you're most of the way to ISO 27001, and vice versa.
Common controls both require:
- Access control and authentication (MFA)
- Encryption at rest and in transit
- Incident response procedures
- Vulnerability management
- Change management
- Vendor risk management
- Security awareness training
- Logging and monitoring
The main things ISO 27001 adds:
- Formal risk assessment methodology (required, not optional)
- Statement of Applicability (SoA)
- ISMS documentation (policy of policies)
- Management review meetings
- Internal audit program
- Continual improvement process (PDCA cycle)
When To Start With SOC 2
Choose SOC 2 first if:
- Most of your customers are US-based SaaS companies
- You're getting asked for SOC 2 in sales deals right now
- You have a small team (< 50 people) and want the lighter-weight option
- You want to get compliant fast (3–4 months is achievable)
- You're in B2B SaaS and the security questionnaires reference SOC 2
When To Start With ISO 27001
Choose ISO 27001 first if:
- Your customers are European or Asia-Pacific companies
- You're bidding on government contracts (ISO is often required)
- You want a certification you can display (SOC 2 reports can't be publicly shared)
- Your industry requires it (healthcare tech in EU, financial services, defense)
- You plan to expand globally
The "Do Both" Strategy
For many growing startups, the answer is both. Here's the efficient path:
Phase 1: SOC 2 First (Months 1–6)
- Implement security controls
- Start your SOC 2 Type II observation period
- Set up continuous scanning and evidence collection
- Complete your first SOC 2 audit
Phase 2: Add ISO 27001 (Months 6–12)
- Build your ISMS documentation on top of SOC 2 controls
- Conduct a formal risk assessment
- Create your Statement of Applicability
- Run an internal audit
- Engage an ISO certification body
Because the controls overlap so heavily, Phase 2 is mostly documentation work, not new technical controls.
How Proveably Handles Both
Proveably maps your security posture to both frameworks simultaneously:
- Every scan finding is mapped to relevant SOC 2 controls AND ISO 27001 Annex A controls
- The compliance dashboard shows your readiness percentage for each framework side-by-side
- Policy templates cover requirements for both standards
- Evidence collection satisfies both audit requirements
- The AI Auditor understands both frameworks and can answer questions about either
One scan. Two frameworks. Zero duplicate work.
Bottom Line
Don't overthink it. Pick the framework your customers are asking for, implement it well, and plan for the second one. With a platform like Proveably that supports both from day one, you're not locked into a single path.
Free Templates for Both Frameworks
Whichever framework you choose, these templates will help you get started:
For SOC 2:
- SOC 2 Readiness Checklist — Map your controls to Trust Service Criteria
- Information Security Policy — Required for any compliance programme
- Incident Response Plan — A must-have for CC7.x controls
For ISO 27001:
- ISO 27001 Implementation Checklist — Track your progress against all Annex A controls
- Change Management Policy — Required for A.8.32 control
- Vendor Management Policy — Covers A.5.19-A.5.22 supplier requirements
Browse all 25+ free compliance templates →