The F in SOC2 stands for functional

The text discusses the challenges and implications of the SOC 2 compliance process for startups, emphasizing the burdens it places on small companies and the potential stifling of innovation. While acknowledging the importance of security and compliance, the author criticizes the current system as overly complex and costly, likening it to a "credentialing cartel" that imposes significant financial and operational strains, particularly on nascent companies. The rise of compliance vendors and the additional pressures from auditing firms are highlighted as contributing to the problem, with the author advocating for a more scalable and flexible approach to compliance that better accommodates the needs of smaller companies. The text suggests a need for a tiered system of compliance that allows companies to gradually build their attestation capabilities without the overwhelming demands of the current SOC 2 process, proposing a "Trust Kit" approach to streamline documentation and ensure security practices are continuously demonstrated rather than simply certified.