Did you know that tech startups normally spend over $300K during their first year of business?

Many people dream of starting a tech company and solving the world’s problems, but few have what it takes. When considering tech startup ideas, you need an understanding of how impactful the idea will be on the world.

We’ll share some of the best tech business ideas for people to start, give you some background on each industry, and share the average revenue, profit margins, and growth rate for the industry. Get ready to learn about profitable tech startups.

By the end of this post, you’ll know about major players in the tech startup space and have the inspiration and details you need to launch your tech business.

What are tech startups?

When they hear “tech startup,” most people think of software companies, SaaS (Software as a Service), and technology like AI and VR. The truth is, though, technology is a very broad concept that touches just about every industry.

So what is a tech startup? In short, it’s any business that aims to provide technology products or services to customers, whether those are end users or other businesses.

This can include what we think of as basic services, like device repair or website design, along with things like biotech, nanotech, robotics, and other advanced or emerging technologies.

Best tech startup ideas

There are countless tech startup ideas, and the best ones often address current problems or needs in the market. Here are some tech startup ideas to consider.

1. AI-powered customer support

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best for: Outgoing and social entrepreneurs, those with strong scheduling, time management, and problem-solving skills

The expansion of artificial intelligence technology in the past few years has opened up a lot of startup ideas for aspiring entrepreneurs who want to start their own business in tech. A customer support platform is among the most in-demand.

According to a survey from Salesforce, 23% of customer service companies were already using AI in 2023, and that figure is only likely to grow as more people embrace the technology. You can start a very successful tech startup providing these chatbot services to potential customers.

2. eLearning platform

• Average Annual Revenue: $234K+
• Average Profit Margins: 5.8%
• Startup Costs: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.1%
• Best for: People with niche or in-demand skills and expertise

What’s great about starting an online course business is that it’s not just for tech entrepreneurs. If you have basic computer knowledge and skills or expertise that other people want to learn from, you can start a profitable business with an eLearning platform.

The most popular subjects for online courses include web design, graphic design, and business topics like digital marketing, social media management, and how to write business plans.

The truth is, though, you can start an online platform for education on any subject that you’re passionate and knowledgeable about. Jacques Hopkins makes $40,000 a month from Piano in 21 Days, which started from his love of playing piano as a hobby. Hear his story here:

3. Health and wellness apps

• Average Annual Revenue: $130K+
• Average Profit Margins: 5.4%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 0.4%
• Best for: Wellness and nutrition professionals, athletes and fitness experts, entrepreneurs who excel at organization, sales, and customer service

Healthcare mobile apps are a rapidly growing industry. This market grew by 14% during 2020, largely fueled by the pandemic, and is expected to reach nearly $150 billion by 2028.

Basically, if you’re looking for a tech business idea that can help potential customers improve their lives while you earn a profit, health apps for mobile devices are an excellent way to go.

Launch the best business startup with a health and wellness app by niching down on a target audience. That’s what James Li did when he started Mighty Health, an app business focused on wellness for people over 50. Hear his story here:

4. Smart home solutions

• Average Annual Revenue: $43M (there are only 836 companies in the industry)
• Average Profit Margins: 18.1%
• Startup Costs: $1M+
• Time To Revenue: 1+ years
• Annual Market Growth Rate: 12.6%
• Best for: Tinkerers, makers, programmers, engineers, automation experts

A smart home technology startup can take a lot of different forms, and that’s one reason this business model is a great way for aspiring entrepreneurs to get into the tech space.

You can create smart devices to automate or simplify just about any household task, from food tech like smart appliances to automatic cleaning solutions or home security solutions.

If you want a cheap, easy tech startup idea, consider a business creating automation routines or skills for existing smart home systems. That’s one of the few approaches to starting a tech company you can get into with $0 startup costs, and it can be a very profitable venture if you appeal to the right target market.

5. Sustainable tech

• Average Annual Revenue: $500M
• Average Profit Margins: 13.25%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 18.1%
• Best for: Eco-conscious entrepreneurs, makers, programmers, and engineers passionate about sustainability

Climate change and sustainability have become an increasing concern for consumers in the past few years and people are eager for innovative ideas to reduce their carbon footprint and impact on the environment.

There are lots of tech startup ideas related to sustainability, from new ways to use renewable energy like solar and wind power to developing electric car charging stations and plastic-replacement products.

The bottom line is sustainable tech is an emerging industry poised for rapid growth, and you can make big revenue (and a big impact on the world) with a tech startup company in this space.

6. Telemedicine platform

• Average Annual Revenue: $22M
• Average Profit Margins: 19.37%
• Startup Costs: $500-$250K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 4.6%
• Best for: Healthcare professionals, health and wellness experts, programmers and developers

Telehealth is another emerging industry that’s seen rapid growth in the past few years. It’s expected to be a $460 billion industry by 2030, and North America is the largest market for these healthcare tech solutions.

This is among the top technology business ideas for entrepreneurs in the health and wellness space. As telemedicine adoption expands, providers and patients are eager for ways to use augmented reality, cloud technology, and similar emerging technologies to help people stay healthy.

7. Personal finance management

• Average Annual Revenue: $1.57M
• Average Profit Margins: 18%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months (not including time training as a CPA)
• Annual Market Growth Rate: 1.7%
• Best for: CPAs, finance experts, entrepreneurs with strong math skills

Instead of using traditional financial services, an increasing number of people today are looking for tech solutions to their money management.

Financial tech businesses include things like online stock investing platforms, mobile apps for asset and investment management, and banks that operate solely through an online platform.

This is an idea that isn’t just great for folks from the tech industry but also for accountants, bankers, investors, and other financial experts who want to start their own business in the tech industry.

8. Language learning apps

• Average Annual Revenue: $75K-$200K
• Average Profit Margins: 12.4%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best for: People who speak more than one language, global web and software developers

Students aren’t the only ones who need to learn a second language. As remote work and digital nomads become more prevalent, more people have the chance to travel the world—and they need an easy way to communicate with people wherever they go.

A language learning app is one tech startup idea that capitalizes on this trend and can be a very profitable business. Just look at existing language learning tech businesses like Duolingo, which has been growing at a rate of up to 128% year-over-year since 2019.

9. Virtual reality experiences

• Average Annual Revenue: $3,570,588
• Average Profit Margins: 30.36%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 30.36%
• Best for: Gamers and game designers, creative entrepreneurs

The rise of augmented reality and virtual reality technology has opened up exciting new possibilities for entertainment businesses in the tech space.

There are multiple ways to launch a tech startup idea using this business model. You could open a virtual reality arcade, launch an AR/VR app for mobile devices, or develop a gaming system that utilizes virtual or augmented reality technology.

Virtual reality experiences can be profitable in multiple industries, too, not just for entertainment. From telemedicine to communication to retail, there are ample opportunities for a technology startup offering VR and AR experiences to thrive.

10. Blockchain-based solutions

• Average Annual Revenue: Varies based on tokenomics
• Average Profit Margins: 30.36%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 11.30%
• Best for: Data and programming professionals, people with expertise in finance, law, and other professional services

Blockchain is a distributed database technology that uses cryptographic technology to quickly and securely transfer assets with less risk of fraud, theft, or other issues.

Most current tech startups utilizing blockchain are in the financial and legal sectors—think cryptocurrency or a legal tech startup using blockchain for contract management or real estate deals.

There are even social media blockchain solutions like Stars Arena, which makes up to $300K per day at less than a month old. Plus, users of all audience sizes earn funds by selling tickets to their private rooms, referring people, and receiving tips.

The truth is, though, businesses have only scratched the surface of technology ideas using blockchain. There are a variety of profitable tech startup ideas you can explore in this space, from new payment systems for online businesses to intellectual property protection services and customer relationship management platforms.

11. Remote work tools

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best for: Outgoing and social entrepreneurs, those with strong scheduling, time management, and problem-solving skills

Despite the wave of return-to-office mandates, remote work is here to stay. In 2023, 12.7% of full-time employees worked remotely, while another 28.2% worked under a hybrid business model—and that’s not even counting freelancers and contractors.

What’s more, it’s estimated that 32.6 million Americans will work remotely by 2025. That’s a lot of potential customers for software startup ideas or software as a service (SaaS) products aimed at remote workers.

12. AR-powered shopping

• Average Annual Revenue: $31K+
• Average Profit Margins: 1.9%
• Startup Costs: $100-$1K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 10.5%
• Best for: Those who like to socialize with and plan or organize for others

One of the biggest untapped niches for augmented reality technology is in the eCommerce business and online retail space.

Large companies like IKEA and Home Depot are already using AR tech to improve customers’ online shopping experiences, letting them see furnishings in their homes before they buy.

Augmented reality can be just as valuable for online businesses in the fashion industry, as we’ve seen from interfaces like Warby Parker’s virtual try-on system.

As more businesses take advantage of online shopping to serve customers, the need for this kind of business tech will only increase. That’s why an AR-powered shopping interface is among the best business ideas to start today—you’re still in time to get ahead of this trend.

13. Food-delivery innovations

• Average Annual Revenue: $131K
• Average Profit Margins: 3.6%
• Startup Costs: $100-$9.5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 6.7%
• Best for: People with good connections to restaurants, those who like to socialize and are familiar with delivery routes

Food delivery is another rapidly growing industry. According to the restaurant software Toast, 185 million people are expected to use food tech for ordering by 2025.

This includes 63% of millennials and Gen Z-ers, a target audience whose purchasing power is still on the rise.

While food delivery tech business ideas will need to compete with big established brands like Grubhub and Uber Eats, there are a lot of untapped niches in this space. For example, Slice has made its name focusing solely on local pizza delivery.

A tight local focus helped Trellus grow its business, too. Founder Adam Haber had the startup idea to help small local companies compete with big box stores, and they’ve now completed more than 35,000 deliveries. Hear their story in this interview:

14. Personalized healthcare and diagnostics

• Average Annual Revenue: $130K+
• Average Profit Margins: 5.4%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 0.4%
• Best for: Medical professionals and healthcare experts

Lots of people today turn to websites like WebMD for answers to their health questions, but the limitations of these sites have been well-publicized.

This is where a tech business offering personalized diagnostic information can fill in the industry’s gaps, especially in conjunction with the expansion of telemedicine services.

A personalized healthcare app is among the top technology startup ideas for doctors, therapists, and others who have medical expertise they want to leverage to launch and grow their own online businesses.

15. Cyber security solutions

• Average Annual Revenue: $1.4K
• Average Profit Margins: 6.4%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.2%
• Best for: Programmers, ethical hackers, IT professionals with strong analytical and customer service skills

As more people and businesses use cloud services and other online interfaces, the risk of data breaches and other issues grows. Businesses across industries need a reliable tech partner who can keep their data, systems, and networks secure.

This has created a boon for tech companies offering cyber security services. A recent survey from McKinsey & Company shows the cyber security market is growing at a rate of 12.4% a year, representing a $2 trillion opportunity for cyber security startup businesses.

A cyber security tech consulting startup is one way to get in on this growing industry. Other companies are utilizing artificial intelligence and machine learning to develop new cyber security software and tools.

The bottom line is that if you’re an entrepreneur with cyber security experience, there are ample profitable tech startup ideas you can explore.

16. Smart mobility solutions

• Average Annual Revenue: $449K+
• Average Profit Margins: 5.5%
• Startup Costs: $1K-$100K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.9%
• Best for: Logistics experts, travelers and drivers, vehicle repair and maintenance pros

The logistics and transportation industry has embraced digital transformation in the past few years, and smart mobility solutions are among the best startup business ideas in this space.

Smart mobility involves using technology like big data, telematics, and artificial intelligence to improve the transportation of goods and people. This could mean using data analytics for traffic management, establishing autonomous public transportation options, or creating mobility-as-a-service platforms and smart parking solutions.

Using advanced technology for community-centered startup models can be a very profitable tech business in transportation and logistics.

17. EdTech for specialized skills

• Average Annual Revenue: $234K+
• Average Profit Margins: 5.8%
• Startup Costs: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.1%
• Best for: Educators, people with niche or in-demand skills and expertise

Online learning has expanded access to knowledge around the world. Education institutions for all age levels have embraced the power of data analytics, artificial intelligence, and virtual reality to reach students in new ways.

An EdTech startup can take many forms. You could launch an online coaching startup that connects learners with teachers for one-on-one education. Other business ideas include using cloud technology to create learning platforms or starting a software development company that creates education solutions.

Teachers, professors, and other entrepreneurs with education experience are the best-positioned to thrive with an EdTech startup, but the truth is this niche is wide open for anyone with skills and knowledge to share.

18. Social networking for specific niches

• Average Annual Revenue: $60K-$160K
• Average Profit Margins: 8%
• Startup Costs: $500-$2K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 10.5%
• Best for: Bloggers, influencers, digital marketing and social media experts

Social media has become the go-to way for people around the world to find their communities. While a new tech startup might find it hard to compete with big-name platforms like Facebook or X, you won’t need to if you niche down into a community.

Finding and building that community is the most challenging part of starting a tech business in the social networking space. That makes strong digital marketing skills essential for anyone planning to start this kind of tech business.

19. Elderly care technology

• Average Annual Revenue: $1.1M+
• Average Profit Margins: 19.37%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 2.0%
• Best for: Health and wellness experts, engineers, inventors, and IoT programmers

The percentage of the U.S. population that’s over 65 has been steadily growing. According to the Census Bureau, 16.8% of the population was over 65 in 2020, which represented a growth rate that’s five times faster than that of the general population.

This has driven an increasing need for elder care services, and tech companies can be part of that solution.

Some of the best startup businesses in this space include wearable health monitoring technology, memory aids, automatic pill dispensers, and other gadgets that allow seniors to maintain their independence.

Other profitable tech startup ideas related to elder care include animatronic pets, robot roommates, and senior-focused social platforms that help older people stave off loneliness and maintain social connections.

20. Event management and ticketing platforms

• Average Annual Revenue: $34K+
• Average Profit Margins: 12.2%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1%
• Best for: Strong networkers, great party planners, outgoing and social entrepreneurs

Event planning is a popular business idea, and you can take that concept high-tech by starting an event management platform.

This is another area where focusing on a niche is a smart business strategy. Instead of trying to compete with established companies like Ticketmaster or Eventbrite, you can hone in on a target market or geographic area that’s underserved by these all-purpose platforms.

21. Digital marketing automation

• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Costs: $100-$10K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best for: Advertising and marketing experts, people with skills in AI and software development

Most businesses today need to use digital marketing in some form to connect with customers, whether that’s through their business social media channels or via advertising like Google Ads or Facebook ads.

This kind of marketing can be time-consuming, however, and many business leaders don’t understand concepts like search engine optimization, lead generation and nurturing, or other critical factors in the success of a digital marketing campaign.

Digital marketing automation platforms take the guesswork out of effective online marketing while saving time in business owners’ busy schedules. For entrepreneurs with digital marketing expertise, creating this kind of platform is among the best tech startup ideas because of this high and growing demand.

22. 3D printing business

• Average Annual Revenue: $1.6M
• Average Profit Margins: 4.3%
• Startup Cost: $500-$250K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: -5.6%
• Best for: Makers, inventors, designers, artists and creative entrepreneurs

A print-on-demand (POD) eCommerce business has long been one of the best startups, especially for those who want a business they can start and run from home.

The rise in 3D printing technology takes the POD landscape to an entirely new level. Instead of just customizing products for customers, you can create completely new customized items based on their specifications.

A 3D printing business is among the best tech business ideas for those who want scheduling flexibility or a semi-passive income. You can set up an eCommerce business platform to collect orders and handle fulfillment, then create the products on your own schedule.

While 3D printers do still cost more than your standard 2D printer, their average price has dropped substantially in recent years. Even a commercial 3D printing system can cost as little as $3,000-$5,000 in the current market, a very reasonable startup cost given the profit potential of this niche.

23. Robotics startup

• Average Annual Revenue: $48M+
• Average Profit Margins: 11.11%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 24.7%
• Best for: Entrepreneurs with product development, electrical engineering, and mechanical skills

Another emerging technology that’s got a lot of potential for tech startups is robotics. Robots are utilized in a range of industries, from manufacturing plants to product delivery and a host of things in between.

Companies that use robots in their production or workflow processes need to get them from somewhere, and that could mean you if you start a tech business as a robotics startup.

24. Biotech startup

• Average Annual Revenue: $56M+
• Average Profit Margins: 16.90%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.6%
• Best for: Innovative entrepreneurs with experience in biology, chemistry, environmental science, and similar fields

Biotech is basically any technology that’s based on biology. This technology applies the concepts of cells, molecular biology, and ecology to the tech industry, in the process creating very innovative ideas that can streamline and improve how people and societies function.

The main areas of biotechnology research currently are in the environmental, industrial, and healthcare sectors, but it’s certainly not limited to these areas. There’s a growing demand for biotech services in the agricultural space, for example, as well as in areas like nanotechnology.

Since most forms of biotech are still in the emerging technology space, the clinical trial period can be long and complicated. High startup costs and time to revenue are the primary challenges for companies in this sector.

25. Tech repair services

• Average Annual Revenue: $560K+
• Average Profit Margins: 5.7%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.4%
• Best for: Electronics and repair experts, tinkerers and makers with strong organization and customer service skills

The more technology and devices are in use, the higher the demand for people who know how to repair them when things go awry. This makes a repair service one of the most profitable tech startup ideas.

One of the best things about this type of business is that you don’t need a ton of money to start. You can even avoid needing a brick-and-mortar space by offering mobile electronics repair or complimentary pickup and drop-off services.

Joe’s Electronics Repair was started with a shoestring budget, and in five years, it grew to a seven-figure revenue. Find out how he started his business and achieved such rapid growth in this interview:

26. Social media consultancy

• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Cost: $100-$10K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best for: Marketing, advertising, and PR professionals with excellent customer service and communication skills

A social media consultancy firm works with other business owners to help them better connect with customers and develop brand awareness using these platforms.

The high demand for these services gives it the potential to be a very profitable business, especially if you leverage technology like automation and artificial intelligence to operate at peak efficiency.

One reason this is among the best IT business ideas is that it has a very low potential startup cost. If you’re skilled in using social media platforms, you can potentially start for free—just start taking clients through a freelance platform.

The costs are a bit higher if you want to utilize tools for SEO, natural language processing, and other advanced concepts. Even so, a social media business requires a much lower upfront investment than most of the tech startup ideas on this list.

As far as how much you can make, the sky’s the limit. The social media agency Socialistics started as a side hustle and quickly grew to make $500,000 a year. Hear how they built their company in this interview:

27. Web design business

• Average Annual Revenue: $239K+
• Average Profit Margins: 5.3%
• Startup Cost: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.4%
• Best for: Designers, SEO/SEM experts, creative entrepreneurs with HTML, CSS, and other basic coding skills

A web design business is another popular tech startup for those who want to provide B2B services—and with good reason. You can make a lot of money creating and maintaining websites for other companies, and you don’t need a ton of tech skills or startup funds to get going.

Granted, the most successful web design firms do have some advanced knowledge of concepts like data analytics, graphic design, content marketing, and similar skills. As tech skills go, though, these are relatively basic and you can learn them for free through online learning platforms if you don’t already have them.

What is a good startup business?

There’s no one answer to that question. The best tech startup idea is one that matches your skills and interests as the founder and solves a problem or provides a necessary service to consumers.

To decide if a tech business is a good choice for you, start by thinking about your areas of expertise and the types of work that you enjoy doing. From there, it’s a matter of researching the market and existing competition to identify the best tech startup ideas for you.

How to start a tech startup

The specific steps will depend on the type of business you’re starting. In a general sense, though, this starts with doing some research to verify and validate your business idea.

Once you think you have a successful business concept, the next step is to write your business plan to clarify the exact services or products you’ll provide, how you’ll differentiate yourself from other businesses in the niche, and how you’ll connect with your target audience.

Securing financing is the biggest hurdle to turning many tech ideas into real-world businesses. A combination of personal funds, business loans, and investor funding is often necessary to get tech startups off the ground.

How many tech startups fail?

Startup businesses in general have a relatively high failure rate, with roughly 10% failing in their first year and a failure rate of up to 90% overall, depending on which statistics you look at.

Businesses in the tech industry do tend to have a higher failure rate than other industries overall. It’s estimated that roughly 63% of tech businesses fail within their first five years. That number is lower for companies that are backed by venture capital or other investors, however, with a failure rate of around 30% for venture-backed startups.

How many tech startups are created each year?

This is another figure that varies year to year, with an increasing number of tech startups emerging each year as new technologies develop. Data from Microsoft indicates there are roughly 50 million new tech startups launched each year globally.

How to compare tech business ideas

You want to consider your business idea based on a range of factors to give yourself the highest chance of success. These can include:

• Your knowledge or expertise
• The current demand in the market
• Common customer problems or unmet needs
• Competition within the sector from other businesses
• Your geographic area and its needs
• Availability of the technology needed for the business
• Startup costs
• Average time to profitability
• Time investment required
• Industry growth trends

What are the most profitable tech startup ideas?

The most profitable tech startup ideas are ones that solve a problem for the most people. Online courses can reach up to 80% profit margins. There are plenty of other tech startup ideas that can make great profits, too. Social media has consistently been a high performer as have medical devices and energy startups.

When considering a tech startup idea, always conduct thorough market research, understand your target audience, and focus on solving real problems or improving existing solutions. Remember that a startup’s success depends on execution, dedication, and adaptability to market feedback.

Which tech startup idea do you like?

We’ve introduced dozens of tech startup ideas to help you land on one that can be highly profitable. Remember, it helps to be passionate about your pursuit, too, because you will face challenges that will be difficult to overcome.

You’ll also want to have a thorough business plan with an inspiring mission and vision to help your company get the funding it needs to achieve its potential.

One of the reasons Elon Musk gets cut so much slack despite constantly drawing negative attention is because his goals align with a mission of saving the human race.

From Tesla trying to help us reach zero carbon emissions to SpaceX trying to take people to other planets and his purchase of Twitter to protect free speech, Musk shows us he’s trying to help humanity.

Your tech startup idea should aim to achieve similar lofty goals. What type of startup ideas do you like?