SOC2 compliance has become a mandatory tax for startups selling to enterprises, with Vanta building a $4B business automating the process. The system relies on screenshots as evidence, creates perverse incentives through pay-for-play auditors, and spreads virally through vendor dependencies. While compliance automation provides value, the process diverts early-stage companies from product development without meaningfully improving security. The industry needs real-time, programmatic compliance monitoring instead of six-month observation periods and PDF certificates that are rarely read.
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What is SOC2, anyway?Problems with SOC2It’s Just BusinessBreaking the Screenshot TaxSort: