The question hits every early-stage company eventually: “Are you SOC 2 compliant?” or “Do you have ISO 27001?”
For a team of fewer than ten people handling non-PII data and planning international expansion, the answer isn’t whether to get certified — it’s which path makes sense now versus later.
Here’s what actually matters when you’re trying to prove security without burning half your runway.
The Two Options
ISO 27001 is the full framework — comprehensive, process-heavy, internationally recognized. It requires documentation across your entire org, regular internal and external audits, formal risk management, and ongoing policy reviews. It shines in global markets (especially Europe) and for companies with complex security needs. The tradeoff: significant operational burden for a small team.
SOC 2 Type II evaluates specific controls over a defined period. It’s lighter operationally, widely recognized in the U.S., and focused on proving controls work rather than building an entire management system. Lower cost, faster timeline, designed for lean operations.
What Actually Determines the Choice
Team capacity. With fewer than ten people, every hour counts. SOC 2 focuses on demonstrating effective controls. ISO 27001 requires building and maintaining an entire management system. We’ve seen teams implement SOC 2 in months; ISO 27001 takes longer and needs more ongoing maintenance.
Geographic targets. U.S. clients expect SOC 2. European markets lean toward ISO 27001, especially in regulated industries or GDPR-adjacent spaces. If you’re U.S.-focused now but planning European expansion, the timing becomes: SOC 2 handles immediate needs, ISO 27001 supports international growth.
Data profile. Non-PII data doesn’t carry the regulatory weight of healthcare records or financial information. SOC 2’s control-focused approach covers what matters without ISMS overhead. If your data profile changes — say, you start handling PII or enter a regulated vertical — that’s when ISO 27001 becomes relevant.
Cost efficiency. SOC 2 Type II is typically cheaper: smaller scope, lighter documentation, faster certification. For lean operations prioritizing cost control, this matters.
Making It Work Without Drowning
Automation changes everything here.
Automate evidence collection. Manual audit prep is painful. Automated log extraction, access reviews, and control monitoring reduce operational burden significantly. Same principle as dynamic query construction — variable interpolation pulling data from complex structures, but for compliance reporting.
Build for audit trails. Strong logging matters for both certifications. Structure systems to log critical actions (access changes, configuration updates, data handling) in queryable formats. Makes proving controls work easier without manual effort.
Documentation as code. Version it, automate updates where possible, integrate it into engineering workflow. Works especially well with SOC 2’s focus on proving controls versus maintaining extensive policy libraries.
The Practical Path
Start with SOC 2 Type II if you’re small, handling non-sensitive data, operating primarily in the U.S., with international expansion planned.
Why: matches current operational capacity, satisfies U.S. market expectations, faster and cheaper to implement, automation keeps it lean.
Move to ISO 27001 when you’re actively entering European markets, clients explicitly request it, your team grows significantly, or you add new data types or regulatory requirements.
SOC 2 Type II buys time to scale operationally before taking on ISO 27001’s heavier lift.
Implementation
Near-term SOC 2 approach:
- Run gap analysis — identify existing controls and gaps
- Automate monitoring — set up logging, access reviews, change tracking for continuous evidence collection
- Document control objectives — focus on what you actually do
- Schedule audit early — Type II audits assess 6-12 month periods
Long-term ISO 27001 prep:
- Watch for European market signals
- Scale automation infrastructure for additional documentation requirements
- Build incrementally — many SOC 2 controls map to ISO 27001 requirements
Don’t overcomplicate early. Build necessary security controls, prove they work, scale certification strategy as the company grows.
What Works
Successful small teams treat compliance as an engineering problem, not bureaucratic overhead. They automate what they can, document what matters, avoid gold-plating processes they don’t need yet.
Teams that struggle either delay until certification blocks deals, over-invest in frameworks too heavy for their stage, or try managing everything manually.
Start lean. Automate early. Scale intentionally.
Security certifications build trust with clients, partners, and regulators. For small teams, the goal is demonstrating that trust without consuming operational capacity.
SOC 2 Type II gives you that balance now. ISO 27001 becomes the right choice when market, team, and data profile demand it.
Build for where you are, not where you might be in five years. You can always scale certification strategy — you can’t get back time spent on frameworks you didn’t need yet.
Teros is your founding engineering team for early-stage startups. With over a decade of experience partnering with Bay Area companies, we specialize in building high-performing teams across software development, machine learning, cloud-native solutions, and infrastructure.
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