Humans are greedy beings. So I guess its marked up and profit from the expected cost for their project. I guess their initial effort cost as well. lol
Nature of the beast and you are right on the money. However, if they are genuine, most start-ups are happy to make a profit in the years to come, not right from day one.
Sometimes, a good question for the founders is "How much of your skin is in the game?"
Do they lose their house if the project fails.