What is SOC 2 and why Australian startups need it

Your next customer is going to ask about how you store and keep data safe. Are you ready to answer?

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Australian startups are increasingly aware of the importance of appropriate data security measures, and building trust as an up-and-coming SaaS couldn’t be more important. 

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Despite popular belief, SOC 2 isn’t just for big enterprises. Larger customers, investors, and partners will be looking at seed and series A and B startups to verify proof of trust. The key to helping new startups to scale is—you guessed it—SOC 2 compliance. 

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So, if you’re wondering whether SOC 2 is important for Aussie startups, this post will run through:

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• What SOC 2 is, in simple terms
• Why startups can’t wait
• The Australian context
• The ROI of SOC 2 compliance
• Getting started
• Conclusion: Prove trust before you need it

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SOC 2 in plain English 

There’s a lot of information out there, so we wanted to break it down clearly for anyone new to the concept. 

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SOC 2 is a cybersecurity compliance framework developed by the American Institute of Certified Public Accountants (AICPA). Before you run away, the association developed this to provide organisations with the ability to prove that they securely handle sensitive customer data. 

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It gives clients, investors, and partners confidence that your business demonstrates commitment to security across your organisation. For a new startup, SOC 2 compliance isn’t only an easy win, it gives you tangible proof that you are a trustworthy business. 

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SOC 2 focuses on five Trust Service Criteria:

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1. Security: Protecting information from unauthorised access
2. Availability: Ensuring systems are reliable and accessible when needed
3. Processing integrity: Making sure operations are accurate and consistent
4. Confidentiality: Keeping sensitive data protected and private
5. Privacy: Managing personal information responsibly and transparently

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There are two types of SOC 2 reports that you may have heard of:

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1. Type I shows your controls are designed correctly at a point in time
2. Type II proves they actually work over a prolonged period of time. 

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If you need more evidence that this is an essential framework for any new startup, jump to the next section. 

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Startups can’t wait to be SOC 2 compliant

Vanta lives and breathes SOC 2, in fact, we have a whole resource hub dedicated to it. We know a thing or two about it, and one of the biggest misconceptions we’ve heard from startups time and time again is that they’re too small for SOC 2. 

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Well, here’s what you’ll be missing if you wait:

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1. Bigger deals

Enterprise customers now require vendors to have SOC 2 compliance before signing a contract, and—yes—they will ask you for proof. 

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Without SOC 2 compliance you’ll meet a dead end on your first big deal, and it’ll place unnecessary strain on your business trying to attain it before the deal goes cold.

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2. Security first operations

Thinking about security earlier on in your business means you set the standard for growth. As you grow and your team expands, already having SOC 2 principles embedded in your business will prevent mishaps and ensure secure operations. 

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3. Credibility with investors

And lastly, investors will look at SOC 2 compliance as proof you’re serious about risk and governance. If you’re looking to close your next round of funding quickly or expand globally, SOC 2 is a non-negotiable. 

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SOC 2 still matters for Aussie startups

Now you know what SOC 2 is and why you’re not too small for it. Now here’s why you need it—even if you’re an Australian startup. 

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The Australian startup ecosystem is thriving, but on the converse side, startups are also experiencing more scrutiny on their data protection practices than ever before. 

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SOC 2 is the key for global expansion, but it’s also critical for:

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• Consumer trust: If you’re in SaaS, fintech or healthtech customers will expect data protection measures.
• Enterprise markets: You need SOC 2 if you want to close bigger clients.
• Growing pains: If you scale fast, lapses in judgment or processes can easily occur. SOC 2 will safeguard your business, your client data and your reputation as you scale. 

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The ROI of SOC 2 compliance

If you’re a new business owner, the last thing you need is an added expense—we get it. You may be thinking compliance is expensive, but automation and tools like Vanta have changed the game. With those, you can:

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• Automate up to 85% of the compliance process.
• Go from zero to SOC 2-ready in 2–4 weeks (versus 3–5 months manually).
• Save hundreds of hours of work per year.
• Maintain continuous monitoring to stay audit-ready year-round.

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And the payoff is huge: According to this IDC whitepaper, Vanta customers see $535,000 in annual benefits and typically pay back their investment in just three months.

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Or, as Nathan Miller, Head of Security at Dovetail, put it:

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“Doing our SOC 2 audits in Vanta has freed up so much of our time. Before, it took four senior people 60 hours of work to get it done—we’ve got that down to five.”

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Getting started with SOC 2

Even if SOC 2 feels daunting, breaking the process into clear, manageable steps makes it far easier to navigate:

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• Run a readiness assessment: Identify your gaps and which trust criteria matter most.
• Automate evidence collection: Use a platform like Vanta to link your systems, collect proof, and monitor continuously.
• Choose an auditor: Partner with an experienced SOC 2 auditor who understands startups.
• Stay compliant: SOC 2 isn’t a one-and-done; continuous monitoring keeps you ahead of customer expectations.

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Need a little help? See how Vanta can help startups with SOC 2 compliance here. 

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Final thought: Build trust now, not later.

You may be feeling like security is a blocker and sits in the too-hard basket, but that couldn’t be further from the truth. Startups that treat compliance as a strategic advantage don’t just win more deals—they earn lasting trust with loyal customers. 

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Don’t wait until your next enterprise deal gets stalled. Be ready before they ask and start your SOC 2 journey with Vanta.