For a growing startup, the world of compliance can be confusing. Two of the most common security standards you'll encounter are SOC 2 and ISO 27001. Both are the expected frameworks to demonstrate your commitment to security, but they serve different primary purposes and markets. Choosing the right one isn't just a technical decision; it's a business choice that depends entirely on who your customers are, where you plan to grow, and what you want to prove.
Key Takeaways
- It's about geography: The simplest way to decide is based on your target market. SOC 2 is the standard for North America, while ISO 27001 is the globally recognized standard, especially in Europe, South America and Asia.
- Report vs. certification: SOC 2 results in a detailed report that you share with customers to prove your security controls. ISO 27001 provides a certification that proves you have a complete Information Security Management System (ISMS).
- Customer demand is key: The right choice is almost always the one your customers are asking for. Compliance is a tool to build trust and unlock sales deals.
Choosing your path: A deeper look at SOC 2 vs. ISO 27001
While both frameworks are respected, they differ significantly in their approach, scope, and the final result you receive.
What is SOC 2?
A SOC 2 is a report that attests to the security of your organization's systems, based on five "Trust Services Criteria" established by the American Institute of Certified Public Accountants (AICPA). It's the standard expectation for B2B companies selling to customers in the United States and Canada.
The five Trust Services Criteria are:
- Security (Mandatory): Protecting information from unauthorized access.
- Availability: Ensuring your systems are available for operation and use.
- Processing Integrity: Ensuring system processing is complete, valid, and accurate.
- Confidentiality: Protecting information that is designated as confidential.
- Privacy: Protecting the collection, use, and disclosure of personal information.
Choosing which criteria to include beyond Security is a business decision. At Probo, our experts help you scope your SOC 2 correctly from day one, ensuring you only focus on the criteria that matter to your customers and your business.
What is ISO 27001?
ISO 27001 is the leading international standard for an Information Security Management System (ISMS). An ISMS is not just a checklist of controls; it's a holistic, risk-based framework for managing your entire security program.
Instead of a report on individual controls, ISO 27001 provides a certification that your management system is sound. This demonstrates to the world that you have a formal, structured approach to identifying, assessing, and treating information security risks. The standard includes a list of suggested controls in its "Annex A" that you can implement as part of your risk treatment plan. Building a compliant ISMS from scratch is a major project, which is why Probo's "done-for-you" service handles the entire implementation process on your behalf.
Built on the same foundation, but not interchangeable
Many security best practices, such as risk management and access control, are part of both SOC 2 and ISO 27001. Because of this, you will find a lot of overlapping controls between them.
However, this is where startups can make a critical mistake: they are not interchangeable. A customer in Germany who requires ISO 27001 will not necessarily accept a SOC 2 report. Likewise, a U.S. client that needs a SOC 2 report might not be satisfied with an ISO 27001 certificate. They address security in fundamentally different ways. SOC 2 is like a detailed inspection of a building's safety features, while ISO 27001 certifies the building has a complete safety management system in place.
SOC 2 vs. ISO 27001 comparison
| Feature | SOC 2 | ISO 27001 |
|---|---|---|
| Primary goal | Provide a detailed report on security controls. | Certification for your management system. |
| Geographic focus | North America. | Global / International. |
| What you get | A detailed report to share with clients. | A certificate you can display publicly. |
| Flexibility | More flexible (based on Trust Services Criteria). | More prescriptive (requires a formal ISMS). |
| Level of detail | Granular: report details the design and effectiveness of specific controls. | Holistic: certificate proves a compliant system is in place, not individual control performance. |
So, which one should you choose?
- Choose SOC 2 if: Your primary customers and growth plans are in North America.
- Choose ISO 27001 if: You are targeting international markets or want to prove you have a globally recognized security program.
Making this choice and then navigating the complexities of either framework can be a significant challenge for a growing startup.
That’s why Probo exists: to provide expert guidance on which path is right for your business and then manage the entire compliance journey for you.
The long term play: What if you need both?
As you scale, you will likely find that you need both. It is a common journey for successful startups. They often start with SOC 2 to win the North American market and later add ISO 27001 as they expand into Europe and Asia.
The good news is that the work you do for one can be leveraged for the other. Achieving the second framework is significantly easier than the first because the underlying controls overlap. This is where proper foundations become critical. At Probo, we do not just get you compliant for today. We build a security foundation that makes it easy to grow with it or to add new frameworks as your business grows, saving you time and resources.
Conclusion
The decision between SOC 2 and ISO 27001 isn't about which one is better, but which one is the right strategic tool for your business. By focusing on your customers' needs and your target markets, you can choose the framework that will best help you build trust and close deals. And with an expert partner like Probo, you can navigate the process efficiently, transforming compliance from a business obstacle into a powerful asset for growth. As an open-source platform, we offer complete transparency and ensure you always own your compliance data.