Not quite a startup yet, more a partially implemented idea, but I'm making a set of "retro consoles" to fufill a lifelong dream of making proper second screen games, in the style of Four Swords for the Gamecube. I've been honestly disappointed in the existing implementations, so I figure it's time to do it myself. Lua for game coding, fpga based gpus, and proper hardware expansion options. And that's all for the handheld. It's still in prototype stage, but it's an idea I've been mulling over since the DS released.