How do I choose a software development agency for my startup?

Evaluate agencies on four criteria: speed to first release (can they ship an MVP in 8–12 weeks?), product thinking (do they help prioritise features, not just build what you ask?), transparency (clear pricing, regular demos, direct access to the build team), and relevant experience (have they shipped products at your stage and in your industry?).

How much does it cost to hire a software development agency for a startup?

Startup software development costs $25,000–$150,000 for an MVP, depending on complexity. A simple web app MVP runs $25,000–$50,000. A more complex product with mobile apps, integrations, and custom backend costs $75,000–$150,000. Many agencies offer phased pricing so you can start with discovery and MVP before committing to a full build.

What is the difference between a software development agency and a freelancer?

Agencies offer a full team (strategy, design, frontend, backend, QA) with a defined process and accountability. Freelancers offer flexibility and lower cost for focused tasks. For building a product from scratch, an agency provides the breadth of skills and coordination needed. For specific features or fixes, a freelancer can be more cost-effective.

How long does it take to build an MVP with an agency?

A typical MVP takes 8–16 weeks with a product engineering agency. The timeline includes 1–2 weeks of discovery, 2–3 weeks of design, and 5–10 weeks of development. The key is defining a tight scope — the most successful MVPs focus on one core workflow for one user type, then expand based on real user feedback.

Should a startup outsource software development or hire in-house?

Most early-stage startups (pre-seed to Series A) benefit from outsourcing — it's faster, provides access to senior talent, and avoids the overhead of hiring a full team. In-house makes sense once you have product-market fit and a long roadmap that justifies permanent headcount. Many startups use a hybrid: agency for the initial build, then gradually build an in-house team.

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Best Software Development Agencies for Startups: What to Look For

Startups need agencies that move fast, think in product terms, and don't hide behind process. There's no single 'best' list—it depends on your stage, stack, and culture. Here's what actually matters when you're picking a software development agency for your startup.

What matters most for startups

Speed without chaos. You need an agency that can go from brief to first release in weeks, not months—and that uses discovery and design to de-risk, not to delay. Look for teams that have shipped MVPs and iterated with real users.

Product sense, not just code. The best software development agencies for startups understand positioning, metrics, and when to cut scope. They'll push back on features that don't move the needle and help you prioritise.

Red flags and green flags

Red flags: long sales cycles, heavy upfront discovery with no build, or a rigid offshore model where you never talk to the people building. Green flags: clear pricing, a defined process (discovery, design, build, support), and case studies that look like your stage and industry.

We've worked with startups from pre-seed to scale-up. We focus on turning ideas into shippable products, then iterating. If you're looking for a partner in that space, we'd love to hear from you.

Explore our Product Strategy, Custom Software, and AI Development services, or get in touch to discuss your project.