What they are
SOC 2 is an American attestation: an auditor reports on your security controls over a period, Type I at a point in time, Type II over months. ISO 27001 is an international certification of your information security management system. They overlap heavily in substance; they differ in geography and paperwork.
Which one first
Selling primarily to US companies: SOC 2 Type II is the default ask. Selling into Europe and Asia: ISO 27001 travels better. Selling globally: most scale-ups end up with both, sharing the same underlying controls. Start with the one your next ten deals will ask for, not the one that seems more prestigious.
Cost and timeline, honestly
With compliance automation tooling, a focused startup reaches SOC 2 Type I in two to three months and Type II in six to nine, spending $30,000 to $80,000 all-in for tooling and audit. ISO 27001 runs similar money with somewhat more documentation overhead. The hidden cost is engineering time for control gaps: access reviews, logging, vendor management.
FAQ
Can we sell enterprise without either?
Sometimes, with a strong security questionnaire response and a pentest report, but you are borrowing time. The badge shortens sales cycles measurably.
Do AI features change the audit?
Increasingly yes: expect questions about model providers, data flows to third-party APIs and AI-specific access controls. Map those flows before the auditor asks.
Type I or Type II?
Type I opens conversations; Type II closes deals. Plan for Type II from day one so the observation window is already running.