Abstract
With the increasing use of the Internet, Web and mobile technologies at present, software startups, which are newly created software companies with no history, have become an important phenomenon in the software industry. They have a wide impact on the technology market and a significant impact on the global economy. However, even with the increase in the importance of software startups for the economy and communities, little research has investigated the challenges of this phenomenon, especially with new software markets, such as the Saudi Arabia market. This study aimed to investigate the challenges faced by the software startup industry in Saudi Arabia. It presents a mixed-methodology study based on semi-structured interviews and questionnaires. The findings of this study revealed a list of challenges that need to be considered in order to improve the industry for software startups. The lack of transparency and funding can be considered the biggest concern for software startups in Saudi Arabia.