Technical and Business Risk Management in Software Startups

A software startup is an emerging company focused on the creation and development of an innovative software-intensive product or service as the basis for creating business value. These types of ventures begin their existence and operate in an environment of high uncertainty and high risks, with few resources, and with inexperienced teams. Being aware of both technical and business risks and managing them properly is a relevant factor for the survival of these ventures. However, there are very few studies focused on knowing how these types of risks are managed in software startups. This study presents the results of a series of qualitative interviews with founders of software startups regarded their technical and business risk management practices. The main results indicate that the risk management activities performed the most are risk identification and risk monitoring and control. Additionally, the two main strategies used to respond to the identified risk are building an MVP (Minimum Viable Product) and executing a pivot.