SOC 2 Compliance: Strengthening Trust and Security at Nth Round

For private companies, equity and ownership data is among the most sensitive information the organization holds. It touches tax obligations, governance rights, family relationships, and transaction readiness. The platform managing that data should be held to a demonstrable security standard.

SOC 2 compliance is that standard — not a self-attestation, but an independent audit of the controls in place. This piece explains what the certification covers and why it matters for the companies that trust Nth Round with their records.

• SOC 2 compliance is independent verification — not a self-attestation — that the security, availability, and confidentiality controls protecting customer data have been audited and found to be functioning.
• Equity and ownership data is among the most sensitive information a private company holds. The platform managing it should be required to demonstrate, not just claim, that it’s protected.
• Nth Round uses Vanta for continuous compliance monitoring — which means controls are verified on an ongoing basis, not just at the point of the annual audit.

What is SOC 2, and Why is it Important?

Safeguarding sensitive information is more than a responsibility—it’s a cornerstone of trust. At Nth Round, achieving SOC 2 compliance represents our unwavering dedication to protecting customer data and exceeding industry security standards.
‍

SOC 2, or Service Organization Control 2, is a rigorous auditing standard governed by the American Institute of Certified Public Accountants (AICPA). It evaluates how organizations manage customer data based on trust service principles like confidentiality, integrity, and availability.
‍

Achieving SOC 2 compliance demonstrates that Nth Round has implemented a comprehensive framework of controls, independently verified, to protect sensitive information.

Continuing Our Commitment

Nth Round’s commitment to the security and trust of our customers remains central to everything we do. As the importance of data security continues to grow, achieving SOC 2 compliance underscores our proactive approach to safeguarding customer information.
‍

This milestone reflects our adherence to industry standards and our effort to exceed them, ensuring our customers’ confidence in a secure and reliable platform.

Why We Pursued SOC 2 Compliance

SOC 2 compliance is an assurance to our customers, stakeholders, and team that we prioritize security at every level. As Nth Round continues to onboard new businesses and their shareholders, securing our customers' trust with tangible, proven security practices is paramount.
‍

With SOC 2, we are reaffirming our promise to provide the highest levels of data protection, ensuring that our systems meet the expectations of today’s compliance and security landscape.

Our Journey to SOC 2 Compliance

Achieving SOC 2 compliance was an intensive process that required detailed planning, strategic partnerships, and a clear focus on our goal: to create the most secure, seamless experience for our customers. Here’s a look at the journey:

Compliance Partnerships

• To ensure thorough preparation, we partnered with Vanta, a leader in the Trust Management field. Vanta’s platform automated the collection of audit evidence, helping us align our internal controls with SOC 2 standards in a structured, time-efficient manner. Vanta’s expertise provided a solid foundation for our compliance journey, allowing us to focus on maintaining data protection while scaling efficiently.
  ‍
• Our chosen audit firm, Advantage Partners, guided us through the SOC 2 process with a seamless approach, ensuring that we remained audit-ready and confident. Their support in evaluating and affirming our compliance was instrumental in helping us achieve this milestone swiftly.

Process & Timeline

• Preparing for the SOC 2 audit was both an organizational and a technical endeavor. The readiness process required us to review and integrate policies, procedures, and security measures across our infrastructure. Once we established these key components, Advantage Partners performed the Type II audit, a thorough examination of our controls over an extended period, culminating in a finalized report. By prioritizing readiness and dedicating resources early, we streamlined our SOC 2 audit timeline significantly, completing it in weeks rather than months.

Lessons Learned on the Path to SOC 2 Compliance

Reflecting on our experience, here are some critical takeaways that guided our journey:
‍

1. Focus on Proactive Security, Not Just Compliance: SOC 2 is not merely a checkbox; it represents an evolving commitment to security. Building a security-first culture early allowed us to implement thoughtful, sustainable controls that benefit our customers and our operations.
   ‍
2. Start Early: Starting the SOC 2 process early enabled us to lay a strong security foundation without interrupting service. Implementing robust policies and procedures from the beginning helps ensure that security becomes an integral part of everyday operations.
   ‍
3. Prioritize the Right Partnerships: Finding compliance partners with expertise, like Vanta and Advantage Partners, was invaluable. Their knowledge streamlined our audit preparation, allowing us to focus on our mission of providing customers with secure, reliable solutions.

What’s Next?

Achieving SOC 2 compliance is just the beginning. At Nth Round, we are committed to transparency, continuous improvement, and annual evaluations to ensure our controls remain best-in-class. This milestone strengthens our promise to deliver peace of mind to our customers, backed by industry-leading security practices.
‍

Ready to experience the difference a secure and reliable equity management platform can make? Book a demo today to see how Nth Round can help you streamline equity administration and enhance shareholder trust.