A tech startup is an early-stage digital business aiming to disrupt the status quo through the development of a software product. They focus on internet and platform technologies, which have spawned numerous new sectors like fintech (payment solutions), e-commerce, agritech, greentech, healthtech, and even solutions that support business communications (telemeeting and conferencing).

Many startups struggle to achieve significant growth and profitability, despite investing large amounts of capital. The main reason for failure is the lack of product-market fit, a key aspect that tech startups must strive to perfect. Nevertheless, there are several factors that can help tech startups succeed. These include the use of HR and payroll automation to streamline all HR processes, such as hiring, onboarding, monitoring work hours, and calculating pay; the development of a clear business idea with an innovative value proposition that differentiates it from competitors; and the recruitment of top talent.

Tech startups are characterized by an agility that sets them apart from other businesses. They are constantly adapting to new technology and market trends, adjusting strategies, and embracing innovative approaches. They are also willing to take risks and challenge the status quo.

Choosing the right legal structure is one of the most important decisions for a tech startup. Partnership is a great option for startups with 2 or more co-founders as it provides flexibility at the beginning stages, while C corporation (C-corp) offers maximum liability protection and may be more appealing to investors.