SOC 2 Type I vs Type II: What Startups Should Choose in 2026

SOC 2 Type I vs Type II: What Startups Should Choose in 2026

Medha Bhatt, Product Manager at SaaSAudit

Jan 30, 2026

Green Fern
Green Fern

SOC 2 continues to be one of the biggest blockers and enablers  of revenue for SaaS startups. But before beginning the journey, every team faces the same question:

Do we go for SOC 2 Type I or Type II?

This concise guide breaks down what each one means, what customers expect, and how startups should decide in 2026.

1. What’s the Difference?

SOC 2 Type I → “Designed Correctly Today”

SOC 2 Type I consists of point-in-time evaluation.
The auditor checks whether your security controls exist and are designed properly on a specific date.

Good for:

  • Proving early maturity

  • Unblocking sales quickly

  • First-time SOC 2 efforts

SOC 2 Type II → “Working Consistently Over Time”

SOC 2 Type II consists of a period-of-time evaluation (usually 3–12 months).
 The auditor verifies that your controls operate effectively every day during that period.

Good for:

  • Selling to enterprise

  • Responding to RFPs

  • Demonstrating operational maturity

2. What Startups Should Choose in 2026

Choose SOC 2 Type I if you:
  • Need SOC 2 fast

  • Are pre-Series B

  • Are establishing baseline controls

  • Want early credibility with customers

  • Are preparing for larger deals later

Why: It gets you compliant quickly and unblocks procurement with minimal overhead.

Choose SOC 2 Type II if you:
  • Sell to mid-market or enterprise

  • Handle sensitive or regulated data

  • Face vendor security questionnaires frequently

  • Already have repeatable processes

  • Want stronger differentiation

Why: Most enterprise customers expect Type II by default.

3. The Smartest Path for Most Startups

Most modern SaaS teams follow this pattern:

  1. Start with SOC 2 Type I → Get trust fast

  2. Run continuous checks → Improve posture

  3. Upgrade to Type II → Unlock enterprise deals

This phased approach reduces operational strain, gets you credibility now and scalability later.

4. How SaaSAudit Helps

SaaSAudit is designed for both Type I and Type II journeyswithout the heavy lift involved in compliance. 

Start your SOC 2 journey with clarity. Sign up for a demo of SaaSAudit.

SOC 2 continues to be one of the biggest blockers and enablers  of revenue for SaaS startups. But before beginning the journey, every team faces the same question:

Do we go for SOC 2 Type I or Type II?

This concise guide breaks down what each one means, what customers expect, and how startups should decide in 2026.

1. What’s the Difference?

SOC 2 Type I → “Designed Correctly Today”

SOC 2 Type I consists of point-in-time evaluation.
The auditor checks whether your security controls exist and are designed properly on a specific date.

Good for:

  • Proving early maturity

  • Unblocking sales quickly

  • First-time SOC 2 efforts

SOC 2 Type II → “Working Consistently Over Time”

SOC 2 Type II consists of a period-of-time evaluation (usually 3–12 months).
 The auditor verifies that your controls operate effectively every day during that period.

Good for:

  • Selling to enterprise

  • Responding to RFPs

  • Demonstrating operational maturity

2. What Startups Should Choose in 2026

Choose SOC 2 Type I if you:
  • Need SOC 2 fast

  • Are pre-Series B

  • Are establishing baseline controls

  • Want early credibility with customers

  • Are preparing for larger deals later

Why: It gets you compliant quickly and unblocks procurement with minimal overhead.

Choose SOC 2 Type II if you:
  • Sell to mid-market or enterprise

  • Handle sensitive or regulated data

  • Face vendor security questionnaires frequently

  • Already have repeatable processes

  • Want stronger differentiation

Why: Most enterprise customers expect Type II by default.

3. The Smartest Path for Most Startups

Most modern SaaS teams follow this pattern:

  1. Start with SOC 2 Type I → Get trust fast

  2. Run continuous checks → Improve posture

  3. Upgrade to Type II → Unlock enterprise deals

This phased approach reduces operational strain, gets you credibility now and scalability later.

4. How SaaSAudit Helps

SaaSAudit is designed for both Type I and Type II journeyswithout the heavy lift involved in compliance. 

Start your SOC 2 journey with clarity. Sign up for a demo of SaaSAudit.

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