Startups

Here’s how startups can prevent tech debt from piling up

Comment

Sink Full of Dirty Dishes
Image Credits: Leland Bobbe (opens in a new window) / Getty Images

Sowmyanarayan Raghunathan

Contributor

Sowmyanarayan Raghunathan is the VP of Engineering at Talentica Software and an NIT Surat alumnus. He has helped over 50 early and growth-stage startups fulfill their engineering needs and stay ahead of the curve in the last 17 years.

In 1992, Ward Cunningham coined the metaphor “technical debt” to highlight how businesses weigh their short-term gains against the long-term viability of a software product. Business dynamics have evolved a lot since then, but the metaphor still works.

Favoring a short-term plan to get a faster go-to-market option is not always bad, provided the business has a backup plan to deliver well-designed code that would simplify future iterations and innovations.

But for startups, reworking is difficult as deadlines and resource crunch prevent developers from producing clean and perfect code. Startups prioritize short-term plans and focus more on adding functionalities to achieve milestones, sign up marquee customers or raise funding. This roadmap shuffling and disregard for the long-term view trigger tech debt.

I have worked closely with more than 25 startups and learned a lot from their journey from early-stage to growth stage. I have realized that avoiding tech debts becomes easier with some ground rules.

Here are four rules that startups should follow to avoid tech debt:

Don’t let specific implementations continue for over three months

Startups often try to customize their product to meet their marquee customers’ demands. Sometimes this leads to two products — a generalized version and a customer-specific one, and converging them becomes difficult over time.

To stay on track, companies start cutting corners, which destabilizes the product. I have seen engineering teams work on customization for a whole year and then lose 20 months in merging and stabilizing the core product.

Startups generally work with an 18-24 month runway before they raise the next level of funding. If they rework to generalize features, they could lose a costly quarter to stabilization.

What to do:

When teams work on custom features for more than the specified timeline, merging them back with the core product becomes complex. It is better to acknowledge that products cannot be customer-specific at the very beginning. Startups should consider the platform and think about future maintainability upfront.

I have experienced these problems while developing products for my customers. That’s why I do not let any specific implementation continue for more than one quarter. Making those features a part of the mainstream product is of utmost importance. This practice ensures that we add the features to the core product before the developers forget why the specific feature was built in the first place.

We followed this method for an email marketing platform where our developers followed a strict timeline to deliver custom features and incorporate those in the core product within a quarter. The plan worked and it helped the platform acquire more customers.

Do an architecture review of the product every 18-24 months

Startups hardly get 18-24 months to raise funds for the next round. This keeps them so engrossed with adding new features that they start ignoring design, versions, technologies and architecture stability.

Consequently, the foundation begins to crumble and accommodating new features becomes challenging over time.

The foundation of any software product is directly responsible for better scaling and maintainability. It comprises technology and architecture, and if they are right, feature addition becomes easier.

What to do:

Review the product architecture every 18-24 months and highlight the technical debt accrued due to old and outdated tools, languages, frameworks or methodologies. We did this with a SaaS product in the recruitment space. The areas of improvement identified by the review helped us quantify the impact on the scalability, availability and maintainability aspects, which helped convince the product owners to have the upgrades included in the product roadmap.

With this approach, understanding where the problem lies and how to help them get out of that situation becomes easier for product owners. This approach is also financially rewarding as the alternative — a complete rearchitecting of the product — is quite expensive.

Upgrade to new open source versions two months after launch

Startups, as they don’t have many paying customers in the early stages, worry a lot about their product and ROI. Some even work without investors. Using open source software is a cost-effective way to build products.

Adopting open source software requires teams to constantly upgrade to newer versions. Skipping one upgrade may not cause trouble, but skipping multiple version upgrades could lead to tech debt, which could consume substantial time to resolve.

I have seen startups losing almost a quarter of a year because they fell behind on upgrading their open source software.

What to do:

Upgrading open source software to more than two major versions can require around 25% of a team’s yearly bandwidth. In contrast, regular open source software updates can reduce cost and free up developer capacity with built-in features.

The engineering team should be aware of the next major change beforehand, as it simplifies upgrade planning. In the case of APIs, the system will fall apart if the team doesn’t upgrade in time. When the upgrades concern libraries or frameworks, wait for a month or two to understand how people are reacting to the upgrade. If the change gets a positive review, stabilize it and then incorporate it into the product.

We upgraded Angular for a real-estate investment platform from version 5 to 11, which reduced load times and improved user experience. The site now loads in less than two seconds and has given the platform a much-needed improvement in user experience.

Understand the product and identify NFRs in advance

Engineering teams often get little clarity about a startup’s future, which prevents them from making certain architectural decisions. For startups, ROI is so important that teams might have to satisfy medium-term needs first and step away — even when there is complete visibility — from implementing complex solutions.

In one such case, I was working with a customer with a regional reach. We were managing the data with batch processing. But then, with the rising investment flow, the customer decided to go national. This increased the volume of data, which managing with batch processing became difficult. Ultimately, this mismatch amassed tech debt.

What to do:

Engineering leaders should be aware of non-functional requirements (NFRs) to avoid complete re-architecture. Re-architecting a product is not easy as it takes months. In addition, working on re-architecting and simultaneously serving existing customers requires monumental effort.

In the example above, if the team knew about the NFRs early on, they could have used a solution comprising paid services rather than managing it independently. This would have ensured the system’s scalability.

The initial infrastructure cost is marginally higher, but it’s worth the price considering that the product’s architecture is right. Later, you can change the tooling to manage cost. For one of our customers, we built a serverless solution from day one, as we knew the NFRs clearly and wanted lean infrastructure. This was done with a team of only three developers.

More TechCrunch

Line Man Wongnai, an on-demand food delivery service in Thailand, is considering an initial public offering on a Thai exchange or the U.S. in 2025.

Thai food delivery app Line Man Wongnai weighs IPO in Thailand, US in 2025

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

Ever wonder why conversational AI like ChatGPT says “Sorry, I can’t do that” or some other polite refusal? OpenAI is offering a limited look at the reasoning behind its own…

OpenAI offers a peek behind the curtain of its AI’s secret instructions

The federal government agency responsible for granting patents and trademarks is alerting thousands of filers whose private addresses were exposed following a second data spill in as many years. The…

US Patent and Trademark Office confirms another leak of filers’ address data

As part of an investigation into people involved in the pro-independence movement in Catalonia, the Spanish police obtained information from the encrypted services Wire and Proton, which helped the authorities…

Encrypted services Apple, Proton and Wire helped Spanish police identify activist

Match Group, the company that owns several dating apps, including Tinder and Hinge, released its first-quarter earnings report on Tuesday, which shows that Tinder’s paying user base has decreased for…

Match looks to Hinge as Tinder fails

Private social networking is making a comeback. Gratitude Plus, a startup that aims to shift social media in a more positive direction, is expanding its wellness-focused, personal reflections journal to…

Gratitude Plus makes social networking positive, private and personal

With venture totals slipping year-over-year in key markets like the United States, and concern that venture firms themselves are struggling to raise more capital, founders might be worried. After all,…

Can AI help founders fundraise more quickly and easily?

Google has found a way to bring a variation of its clever “Circle to Search” gesture to iPhone users. The new interaction, launched in January, allows Android users to search…

Google brings a variation on ‘Circle to Search’ to iPhone users

A new sculpture going live on Wednesday in the Flatiron South Public Plaza in New York is not your typical artwork. It combines technology, sociology, anthropology and art to let…

Always-on video portal lets people in NYC and Dublin interact in real time

Apple’s iPad event had a lot to like. New iPads with new chips and new sizes, a new Apple Pencil, and even some software updates. If you are a big…

TechCrunch Minute: When did iPads get as expensive as MacBooks?

Autonomous, AI-based players are coming to a gaming experience near you, and a new startup, Altera, is joining the fray to build this new guard of AI agents. The company announced…

Bye-bye bots: Altera’s game-playing AI agents get backing from Eric Schmidt

Google DeepMind has taken the wraps off a new version of AlphaFold, their transformative machine learning model that predicts the shape and behavior of proteins. AlphaFold 3 is not only…

Google DeepMind debuts huge AlphaFold update and free proteomics-as-a-service web app

Uber plans to deliver more perks to Uber One members, like member-exclusive events, in a bid to gain more revenue through subscriptions.  “You will see more member-exclusives coming up where…

Uber promises member exclusives as Uber One passes $1B run-rate

We’ve all seen them. The inspector with a clipboard, walking around a building, ticking off the last time the fire extinguishers were checked, or if all the lights are working.…

Checkfirst raises $1.5M pre-seed to apply AI to remote inspections and audits

Close to a decade ago, brothers Aviv and Matteo Shapira co-founded a company, Replay, that created a video format for 360-degree replays — the sorts of replays that have become…

Controversial drone company Xtend leans into defense with new $40 million round

Usually, when something starts to rot, it gets pitched in the trash. But Joanne Rodriguez wants to turn the concept of rot on its head by growing fungus on trash…

Mycocycle uses mushrooms to upcycle old tires and construction waste

Monzo has raised another £150 million ($190 million), as the challenger bank looks to expand its presence internationally — particularly in the U.S. The new round comes just two months…

UK challenger bank Monzo nabs another $190M as US expansion beckons

iRobot has announced the successor to longtime CEO, Colin Angle. Gary Cohen, who previous held chief executive role at Timex and Qualitor Automotive, will be heading up the company, marking a major…

iRobot names former Timex head Gary Cohen as CEO

Reddit — now a publicly-traded company with more scrutiny on revenue growth — is putting a big focus on boosting its international audience, starting with francophones. In their first-ever earnings…

Reddit tests automatic, whole-site translation into French using LLM-based AI

Mushrooms continue to be a big area for alternative proteins. Canada-based Maia Farms recently raised $1.7 million to develop a blend of mushroom and plant-based protein using biomass fermentation. There’s…

Meati Foods bites into another $100M amid growth to 7,000 retail locations

Cleaning the outside of buildings is a dirty job, and it’s also dangerous. Lucid Bots came on the scene in 2018 with its Sherpa line of drones to clean windows…

Lucid Bots secures $9M for drones to clean more than your windows

High interest rates and financial pressures make it more important than ever for finance teams to have a better handle on their cash flow, and several startups are hoping to…

Israeli startup Panax raises a $10M Series A for its AI-driven cash flow management platform

The European Union has deepened the investigation of Elon Musk-owned social network, X, that it opened back in December under the bloc’s online governance and content moderation rulebook, the Digital Services Act…

EU grills Elon Musk’s X about content moderation and deepfake risks

For the founders of Atlan, a data governance startup, data has always been at the heart of what they do, even before they launched the company. In fact, co-founders Prukalpa…

Atlan scores $105M for its data control plane, as LLMs boost importance of data

It is estimated that about 2 billion people, especially those in lower and middle-income countries, lack access to quality and affordable essential medicines. The situation is exacerbated by low-quality or even killer…

Axmed raises $2M from Founderful to streamline drug supply chains in underserved markets

For decades, the Global Positioning System (GPS) has maintained a de facto monopoly on positioning, navigation and timing, because it’s cheap and already integrated into billions of devices around the…

Xona Space Systems closes $19M Series A to build out ultra-accurate GPS alternative

Bankruptcy lawyers representing customers impacted by the dramatic crash of cryptocurrency exchange FTX 17 months ago say that the vast majority of victims will receive their money back — plus interest. The…

FTX crypto fraud victims to get their money back — plus interest

On Wednesday, Google launched its digital wallet in India with local integrations, nearly two years after the app was relaunched as a digital wallet platform in the U.S. As TechCrunch exclusively reported last month,…

Google Wallet is now available in India

Bluesky has launched a new product roadmap for the coming months. The decentralized social network said on Tuesday that it is planning to introduce direct messages, support for videos, improved…

Bluesky to add DMs, video support and in-app custom feed curation