Early SOC 2 Compliance helps your Startup attract enterprise-level clients. Prior SOC 2 Report builds stakeholder confidence, reduces paperwork, and shortens sales cycles. Build a cybersecurity culture in your organization from the outset to streamline processes and smoothen up-scaling with SOC 2. Read our Complete Guide to attaining Startup SOC 2 compliance for your Startup. Visit at https://www.agicent.com/blog/soc2-for-startups-guide

2. This SOC 2 guide helps you understand the significance of SOC 2
Compliance for your Startup. It also explains the process for getting a SOC
2 Report.
SOC 2 for Startups is no more a nice-to-have but a necessity amidst the
growing Data Security concerns. Data Breach and declining Digital Trust
are major issues for the companies across the globe.
For tech Startups and SaaS companies, preventing Data Breach is a much
more serious and fundamental concern. Occupying the lower rung has its
disadvantages and making up for additional costs by charging more is not
an option. That’s where SOC 2 for startups becomes crucial.

3. SOC 2 Compliance is a term used from the perspective of software vendors, tech
companies, SaaS Startups, and their customers. If an organization complies with the
SOC 2 requirements, it is believed to observe high standards of information security.
Therefore, it is safe to do business with the complying organization.
In this sense, it’s a desired status that shows greater trust and higher confidence of
prospective enterprise-level clients in the scenario of B2B dealings. SOC 2 compliance
can also come as a customer request before signing a business contract. However,
such a request is not feasible since SOC 2 reporting can take months.
To achieve an SOC 2 Compliant status, Startups need to undergo an auditing process,
resulting in an attestation report. The SOC 2 report evaluates the organization’s own
claims regarding its quality of security controls.
What is SOC 2 Compliance?

4. In order to attain SOC 2 for startup, you will need a thorough understanding of the framework
before beginning the SOC 2 process.
Trust Service Categories (TSCs) are the main component of SOC 2 framework and sit at the top of
the hierarchy. You will need to define, set up, and implement Information Security Controls
depending upon the TSCs you choose.
AICPA outlines its approach for companies to begin the SOC 2 process through a few points. These
points help companies implement controls based on TSCs.
Understanding the SOC 2 Framework

5. Information Security
Information Security is the central concern of SOC 2. It relates to protecting data of clients and
customers from unauthorized access and use.
Secure Logical and Physical Access
Securing Logical and Physical Access is about restricting access to data, devices, and networks. They help
in identifying authorized personnel to manage access while also laying out the roles, responsibilities,
and privileges.
Continuous System Operations
System Operations relates to the strength and efficiency of the infrastructure to detect and tackle
deviations and disruptions in operations. It also focuses on the time required for mitigating the process
deviations to avoid information security breaches.
Change Management
Change Management refers to secure handling of infrastructure, software, processes, or data after the
updates. Preventing unauthorized changes during the updates is a central concern here.
Risk Mitigation
Risk Mitigation is meant to encourage identification, tracking, and monitoring of risks to business and
services. These risks may relate to information security, location, or growth.

6. What is SOC 2 for Startups?
Service Organization Controls 2 or SOC 2 is an all-encompassing compliance, auditing,
and reporting framework governed by the American Institute of Certified Public
Accountants (AICPA). The responsibility of updating and maintaining the SOC 2 lies
with the Certified Public Accountants (CPAs).

7. Process for SOC 2 for Startups
Assembling the SOC 2 Team and Starting a Culture
The first step towards compliance involves assigning personnel the responsibility of sailing through
the process. Your SOC 2 team should include:
A Technical Lead to communicate with the auditor. This person will act as a bridge between the SOC
2 team and the auditor. CTO or a VP of Engineering can be ideal for this role.
A Business Process Lead to manage the compliance and auditing tasks. This person will define the
workflow, delegate responsibilities, and establish deadlines. A COO or HR Manager is ideal for this
role.
An Information Security Lead, who will be responsible for Security Process Documentation. You may
appoint a Director of Security for this purpose or assign this role to a Senior Engineer.
STEP 1

8. Setting up the Information Security Architecture
The InfoSec architecture will comprise systems, policies, and controls, besides the SOC 2 team. You may
need to designate a person in each team to ensure adherence to data security rules. Here’s a list of
‘Policies’ that will help you set up an InfoSec System for the categories and controls of your SOC 2 report.
1-Data Classification and Handling
2-Risk Management
3-Business Continuity and Disaster Recovery
4-SDLC Policies
5-Incident Response
6-Vendor Management
STEP 2

9. Step 3
Implementing SOC 2 Requirements
Test the effectiveness of your data security policies, methods, and procedures by putting them into
action. Do a gap analysis first. In the selection of Categories and Controls you have chosen, look for
gaps.
After deciding on the SOC 2's ultimate scope, confirm that the necessary policies are in place.
Assign someone within the company to examine the policies. updates the rules and regulations.
Don't be afraid to hire an outside reviewer!
You can upgrade the security control design within your organisation once the gaps have been
filled. To comply with the data security regulations, you might need to make a few minor
alterations to the way your organisation operates.
It is frequently necessary to upgrade hardware, software, and networks in order to implement SOC
2 requirements.
STEP 3

10. Step 4
Evidence Collection and Documentation
Collect evidence showing that all the security controls within the organization are working as
intended. The collected evidence has to be documented.
Some essential documentation includes:
Management Assertions explains how the startup’s system fulfills the service commitments and
meets the TSCs selected for the audit.
System Descriptions show the components of the infrastructure that fall in the scope of the SOC 2
audit. Flowcharts and diagrams make up the Systems Descriptions.
Control Matrix provides the details of the Controls, Criteria, and Categories.
STEP 4

11. Readiness Assessment and Remediation
Readiness Assessment is a rehearsal of the actual auditing performed by internal or external
auditors. Its aim is to point out the gaps in security controls prior to the final audit.
You may choose to create a report from the mock audit, or simply concentrate on finding the
deficiencies and remedial actions.
Preparing for final SOC 2 Audit
Choose an auditing firm or a certified auditor to conduct the compliance audit for your
company. Keep all the documentation ready for the auditor. Prepare your staff for the
interviews that will include questions regarding business operations, security controls, and
SLAs.
After receiving the Attestation Report, prepare for continuous monitoring and attaining the
next SOC 2 report.
Following these six steps, you will be able to sail through your first SOC 2 process.
STEP 5
STEP 6

12. CONTACT US
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NY 10165, USA