Business model development and maturity in software-based startups: Insights from a case study

Abstract

Nowadays, the success or failure of software-based startups is highly dependent on a good alignment of technology, market needs and business model. In this context, an appropriate business design is extremely important for such (new) companies. Commonly, software-based startups are technology-centred and tend to neglect the importance of the business model. Nevertheless, they need to go beyond the development of innovative and effective products or services and take into account the profitability of the company through a proper business model. Based on an exploratory case study of a Portuguese startup, this paper suggests three different levels of maturity for software startups named here as first phase: (i) first product and rookie mistakes, (ii) second phase: the market-driven approach and (iii) third phase: mass market orientation.