Choosing the right compliance framework isn’t just about checking off a regulatory box—it’s about showing your customers they can trust you, protecting the data you’ve been entrusted with, and setting your company up for growth.
But when you’re a fast-moving startup, the alphabet soup of security and compliance can feel overwhelming. Should you start with SOC 2? Do you need HIPAA? What even is ISO 27001, and is it worth it?
If you’re asking these questions, you’re not alone. This blog breaks down the major differences between these three frameworks, when you actually need each one, and how to get started without stalling your momentum.
SOC 2 vs HIPAA vs ISO 27001—What’s the Difference?
Let’s start by clarifying what each of these frameworks is—and who they’re for.
SOC 2
SOC 2 (System and Organization Controls 2) is designed for SaaS companies that handle customer data. It focuses on five “Trust Service Criteria”: security, availability, processing integrity, confidentiality, and privacy.
You don’t technically need SOC 2 to operate—but if you’re selling to enterprises, especially in B2B SaaS, you’ll eventually be asked for a SOC 2 report. It’s like a stamp of approval that says, “Yes, we know how to handle data responsibly.”
➡️ Best for: B2B SaaS, FinTech, analytics platforms, AI tools, and startups working with other businesses’ sensitive data.
HIPAA
HIPAA (Health Insurance Portability and Accountability Act) is a law, not just a framework. If your product handles Protected Health Information (PHI)—names, health records, insurance info, etc.—you are legally required to follow HIPAA’s security and privacy rules.
It’s a non-negotiable for any startup building in healthcare, digital health, or adjacent spaces like remote patient monitoring, telehealth, or health data analytics.
➡️ Best for: Healthcare tech, Health AI, digital wellness apps, EHR providers, and any company storing or transmitting PHI.
ISO 27001
ISO 27001 is an international standard for building a comprehensive Information Security Management System (ISMS). It’s broader and more structured than SOC 2, with an emphasis on company-wide risk management and continuous improvement.
Because it’s internationally recognized, ISO 27001 is especially useful for companies operating globally or working with international partners.
➡️ Best for: Global tech companies, FinTech startups with international clients, or anyone building a long-term enterprise security program.
How to Choose Based on Your Industry
So which one is right for you? It really depends on what kind of data you handle, who your customers are, and where you’re headed.
Here’s a quick cheat sheet:
| Your Industry | Recommended Framework |
|---|---|
| B2B SaaS (US-focused) | SOC 2 |
| Healthcare or HealthTech | HIPAA (maybe SOC 2 too) |
| Global SaaS or FinTech | ISO 27001 (plus SOC 2 if in the U.S.) |
| Working with PHI | HIPAA (compliance is legally required) |
| Selling to Enterprises | SOC 2 or ISO 27001 |
| Going after government work | ISO 27001 or FedRAMP (in the U.S.) |
Still unsure? Some startups eventually pursue both SOC 2 and ISO 27001 to cover all their bases—especially when scaling internationally or planning to exit.
Kickstarting Your Certification: Steps to Get Going
Once you’ve picked the right framework, what’s next? Don’t worry—you don’t have to do it all at once.
Here’s how to ease into the process without overcomplicating it:
1. Do a Readiness Assessment
Start with a simple gap analysis. Where are you already meeting requirements? What still needs to be built? This helps you avoid duplicating effort—or overengineering things.
2. Document Your Policies
Yes, even in a 5-person startup. You need written policies that cover data access, onboarding, offboarding, password hygiene, incident response, and vendor management. Don’t worry—they can be lean and still legit.
3. Invest in the Right Tools
Tools like Drata, Vanta, or Strike Graph can automate a lot of the SOC 2 or ISO 27001 processes—tracking evidence, access logs, and changes in your cloud infrastructure.
For HIPAA, look for platforms that offer Business Associate Agreements (BAAs), PHI encryption, and audit trails.
4. Train Your Team
You’d be surprised how many breaches start with a well-meaning employee clicking the wrong link. A simple 30-minute training session on security awareness can go a long way.
5. Choose a Compliance Partner
You don’t have to figure this out alone. A good compliance advisor or MSP (Managed Security Provider) can help you move faster, stay aligned with best practices, and avoid common pitfalls.
Bottom Line: Frameworks Should Serve You—Not Stress You Out
The point of compliance isn’t just to get a certificate to hang on your (virtual) wall. It’s to build systems that help you grow confidently, sell faster, and sleep better at night knowing your customers’ data is safe.
So take a breath. Choose the framework that fits your goals. Build a solid foundation. And if you ever feel stuck?
Let’s Figure It Out Together
Not sure if you need SOC 2, HIPAA, ISO 27001—or something else entirely? We help startups cut through the noise and get the right compliance framework in place fast. No stress, no fluff, just real support.
Contact us here and let’s get you on the right path.
