Bitropy
Security & Compliance

SOC 2 Type I vs. Type II – What's the Difference, and Why Should You Care?

Understanding the key differences between SOC 2 Type I and Type II certifications, and why Type II is the industry standard for serious SaaS, AI, and Web3 vendors.

December 29, 2024
5 min read
By Bitropy Team
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SOC 2 Type I vs. Type II – What's the Difference, and Why Should You Care?

If your company handles customer data, chances are you've heard of SOC 2. But what does it really mean—and which type should you aim for?

The Key Difference

SOC 2 Type I is a snapshot: it verifies that your security controls are designed correctly—on a specific date.

SOC 2 Type II is the full movie: it evaluates whether those controls actually work over time, typically over a 3–12 month audit period.

Why Type II Matters More

Type II is the real proof of operational maturity. While it costs more (usually ~20–30% higher), it's the industry standard for serious SaaS, AI, and Web3 vendors.

The good news? You don't need to wait for the full report. Most customers and partners will accept a Letter of Engagement from your auditor as evidence that you're on the SOC 2 Type II path.

At Bitropy, we often advise going straight to SOC 2 Type II, skipping Type I entirely unless you're under tight deadlines.

Why SOC 2 Type II Matters

🛡️ Builds Trust with Enterprise Clients

Enterprise customers require proof that you can protect their sensitive data. SOC 2 Type II demonstrates that your security controls aren't just designed well—they actually work in practice.

⚡ Accelerates Vendor Approvals

Many enterprise procurement processes include SOC 2 Type II as a requirement. Having it in place can significantly speed up the approval process and reduce friction in sales cycles.

🔒 Demonstrates Security Commitment

SOC 2 Type II shows that you take security seriously enough to undergo rigorous, ongoing testing. This commitment is increasingly important in today's threat landscape.

🚀 Future-Proofs Your Growth

As your business scales and targets larger customers, having SOC 2 Type II already in place eliminates a major barrier to growth and expansion.

Important Considerations

Just remember: SOC 2 Type II is not forever—you'll need to recertify regularly to stay compliant.

The certification typically covers a 12-month period, after which you'll need to undergo another audit to maintain your compliance status.

Getting Started with SOC 2 Type II

The journey to SOC 2 Type II involves several key steps:

  1. Gap Analysis: Assess your current security posture against SOC 2 requirements
  2. Control Implementation: Design and implement the necessary security controls
  3. Process Documentation: Create comprehensive policies and procedures
  4. Testing Period: Operate with controls in place for the required timeframe
  5. Audit: Undergo the formal SOC 2 Type II audit

How Bitropy Can Help

Need help getting there? Bitropy can guide you from zero to audit-ready with technical and process support that scales.

Our approach includes:

  • Strategic Planning: Custom roadmap based on your specific business needs
  • Technical Implementation: Hands-on support for security control deployment
  • Process Development: Creation of policies and procedures that meet SOC 2 standards
  • Audit Preparation: Comprehensive readiness assessments and mock audits
  • Ongoing Support: Continuous guidance throughout the certification process

Whether you're just starting your compliance journey or need help optimizing existing controls, our team has the expertise to get you SOC 2 Type II certified efficiently and effectively.


Ready to take your security posture to the next level? Contact us to discuss your SOC 2 Type II strategy.

Ready to Scale Your Technology?

Let's discuss how we can help you implement the strategies from this article with exit-proven leadership. Schedule a strategic assessment with our experts.