Is “software startup” the right term? I understand that you might want to “use software” in the startup but surely, in the most successful startups, the thing that makes them successful is that they solve a real problem, that real people/businesses have, and are prepared to “pay” [1] you to solve for them.

If the startup is just “software for the sake of software” then I think that’s a different thing entirely. And to be fair, sometimes software for the sake of it is more like art or fun. And it’s true, sometimes something wonderful comes out of that. Sometimes. :)

[1]: Obviously “pay” can mean _very_ different things in different contexts.