  Software startups are newly created companies with no operating history and
oriented towards producing cutting-edge products. However, despite the
increasing importance of startups in the economy, few scientific studies
attempt to address software engineering issues, especially for early-stage
startups. If anything, startups need engineering practices of the same level or
better than those of larger companies, as their time and resources are more
scarce, and one failed project can put them out of business. In this study we
aim to improve understanding of the software development strategies employed by
startups. We performed this state-of-practice investigation using a grounded
theory approach. We packaged the results in the Greenfield Startup Model (GSM),
which explains the priority of startups to release the product as quickly as
possible. This strategy allows startups to verify product and market fit, and
to adjust the product trajectory according to early collected user feedback.
The need to shorten time-to-market, by speeding up the development through
low-precision engineering activities, is counterbalanced by the need to
restructure the product before targeting further growth. The resulting
implications of the GSM outline challenges and gaps, pointing out opportunities
for future research to develop and validate engineering practices in the
startup context.
