Key challenges in early-stage software startups

Abstract

Software startups are newly created companies designed to grow fast. The uncertainty of new markets and development of cuttingedge technologies pose challenges different from those faced by more mature companies. In this study, we focus on exploring the key challenges that early-stage software startups have to cope with from idea conceptualization to the first time to market. To investigate the key challenges, we used a mixed-method research approach which includes both a large-scale survey of 5389 responses and an in-depth multiple-case study. The initial findings reveal that thriving in technology uncertainty and acquiring the first paying customer are among the top challenges, perceived and experienced by early-stage software startups. Our study implies deeper issues that early-stage software startups need to address effectively in validating the problem-solution fit.