How do Agile Software Startups deal with uncertainties by Covid-19 pandemic?

The dissipation of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) has already taken on pandemic proportions, affecting over 100 countries in a couple of weeks. The evolution of the disease and its economic impact is highly uncertain, which brings challenges for newly created software companies. Software startups are companies that create innovative software products and services in a dynamic and fast-growing market. Agile Software Methods aims to enable startups in responding to uncertainty caused by Covid-19. This paper investigates the impact of Covid-19 in a real software startup context to understand how they have reacted against uncertainties caused by Covid-19. As a research methodology, action research within Di2Win, a Brazilian software startup, has been applied. The study was carried out throughout six sprints, during the quarantine. Practices employed to mitigate threats while simultaneously allowing teams to remain open to opportunities and challenges are detailed. This paper shares lessons learned that could help agile software startups improve their way of work in an uncertain environment caused by the Covid-19 pandemic.