Technical debt (TD) has become an increasingly nuanced concept in entrepreneurship, particularly in the era of Everything-as-a-Service (XaaS). Initially introduced as a metaphor to describe the trade-offs in software development when shortcuts are taken for immediate gains at the expense of long-term maintainability, the concept has since evolved to encompass broader contexts, including digital infrastructure design and management. Its core premise of making visible the balance between short-term benefits with long-term costs has significant importance with the resource-constrained decision-making often observed in new venture creation. This study empirically examines the emerging types and sub-dimensions of TD encountered by startups in the XaaS context. Our findings identify dependency debt and integration debt as two salient forms of TD in this era. Additionally, we uncover two emerging entrepreneurial practices—microsourcing and surface innovation—that illustrate how XaaS is reshaping entrepreneurship. We conclude by emphasizing the growing role of TD as a strategic tool for driving new venture creation.
