Automation Unlocks SOC 2 for Startups
Christina Cacioppo, CEO of Vanta, on the value of SOC 2 compliance for startups
This was a bet that security compliance would shift from a late stage enterprise chore into an early revenue unlock for startups. Once SaaS companies realized SOC 2 and similar certifications helped them pass security reviews and close larger customers sooner, demand moved downmarket. Vanta won by turning a months long consulting project into software that checks systems automatically, shows missing controls, and keeps evidence ready for the auditor.
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Before automation, getting a SOC 2 often meant hiring consultants and auditors, spending $50,000 to $100,000, and losing months of engineering time to screenshots, policy writing, and in person audit prep. Cutting that burden made certification practical for much smaller companies.
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The same pattern shows up across peers. Secureframe described the old trigger point as roughly 100 employees, then said automation pulled demand forward to the 10 to 20 employee stage. Laika similarly framed compliance as something companies increasingly need just to get in the door with enterprise buyers.
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That demand expansion created a much bigger company than skeptics expected. By July 2025, estimated ARR reached $220M for Vanta, with average revenue per customer at $18.3K in 2025 as customers added more frameworks like ISO 27001, HIPAA, and newer AI related standards beyond the initial SOC 2 foothold.
The next phase is less about winning the first SOC 2 audit and more about owning the ongoing trust workflow. As more startups adopt compliance earlier, the category shifts toward multi framework automation, vendor reviews, questionnaire sharing, and continuous monitoring, which gives Vanta more ways to become part of day to day security operations instead of a once a year audit tool.