On Quora a while ago, I answered the question which forms the title for this blog post. Below is an unedited version of the answer which I gave.
For an early stage startups, coming up with the most fancy logo should never the high on the priority list. But coming up with a simple logo which distinguishes the startup and which has appeal is one of the first things to be done. This can be carried out fairly easily using online software such as Canva or even Adobe Photoshop.
But remember something, if you look at all tech companies which began as startups, their logos have had an evolution and are constantly evolving. Whatever logo you begin with will probably change along the way (especially if your startup is a success and evolves into a company), so don’t bother too much about coming up with the best logo design possible.