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Context: Software startups are an essential source of innovation andsoftware-intensive products. The need to understand product development instartups and to provide relevant support are highlighted in software research.While state-of-the-art literature reveals how startups develop their software,the reasons why they adopt these activities are underexplored. Objective: Thisstudy investigates the tactics behind software engineering (SE) activities byanalyzing key engineering events during startup journeys. We explore howentrepreneurial mindsets may be associated with SE knowledge areas and witheach startup case. Method: Our theoretical foundation is based on causation andeffectuation models. We conducted semi-structured interviews with 40 softwarestartups. We used two-round open coding and thematic analysis to describe andidentify entrepreneurial software development patterns. Additionally, wecalculated an effectuation index for each startup case. Results: We identified621 events merged into 32 codes of entrepreneurial logic in SE from the sample.We found a systemic occurrence of the logic in all areas of SE activities.Minimum Viable Product (MVP), Technical Debt (TD), and Customer Involvement(CI) tend to be associated with effectual logic, while testing activities atdifferent levels are associated with causal logic. The effectuation indexrevealed that startups are either effectuation-driven or mixed-logics-driven.Conclusions: Software startups fall into two types that differentiate betweenhow traditional SE approaches may apply to them. Effectuation seems the mostrelevant and essential model for explaining and developing suitable SEpractices for software startups.

The entrepreneurial logic of startup software development: A study of 40 software startups