Profitable IT business ideas for startups in 2025

In the second quarter of 2024, venture funding for tech industry startups reached $65.7 billion. Startups in the information technology (IT) sector are thriving, undergirded by factors such as the growing demand for artificial intelligence (AI) applications.¹

This post will explore profitable business ideas in tech that you can pursue to capitalize on the growth opportunities available.

Understanding the IT startup ecosystem

An IT startup is a business in the early stages of development that is bringing technology products or services to the market. These businesses are driving innovation across all industries, including education, healthcare, and finance. There are more opportunities for tech startups now than ever before, with specialized funding options available in areas such as biotech, green technology, and artificial intelligence.²

However, there are also many obstacles and challenges for new tech startups. The space is crowded and competitive, and there are increasing legislative and regulatory requirements. IT startup businesses that can navigate these issues will be in a good position to succeed in today’s market.² Read on to learn more about some of the top IT startup business ideas for 2025.

1. Software development startups

Startups can be at an advantage when developing new applications. Due to their smaller size, they’re often better equipped to respond to customer feedback. They have more flexibility and the agility to pivot quickly, which helps them adjust to the market. If you’re interested in tapping into this field, you could pursue creating custom software solutions for companies. Business technology ideas that work in this field include software-as-a-service (SaaS) models and mobile app development.³

SaaS is a licensing model that allows businesses to subscribe to cloud-based software services rather than downloading them onto in-house servers. This model allows businesses to scale up or down as necessary, so they only pay for the services they need.⁴

Mobile app development is another ripe opportunity for startups. With people increasingly accessing the internet through their phones, mobile apps let them connect with companies in a way that’s easy and convenient.⁵

2. Cybersecurity solutions

With the increasing sophistication and greater number of cybersecurity threats, providing cybersecurity services to small businesses is a lucrative market. You can offer services such as penetration testing and vulnerability assessments. These “white hat hacking” methods subject software systems to the types of attacks that malicious actors would launch and thus can help identify ways to prevent such attacks from succeeding.

You can also offer managed security services to small businesses. These businesses often aren’t large enough for dedicated security departments, but they still need to be protected. Outsourcing security services can thus be preferable.⁶

3. Artificial intelligence (AI) and machine learning

Businesses are increasingly relying on AI applications to increase productivity and optimize operations. If you’re interested in business ideas in technology, the AI and machine learning industry is a good option. You can build AI-powered tools for automation to make routine business tasks faster and more efficient.⁷

There’s a thriving market for AI applications in healthcare to help with diagnostics, treatment plans, and patient care. In finance, AI applications can power automated portfolio management and enhance the efficiency of financial processes.⁷

Machine learning as a service provides out-of-the-box tools to data scientists and other machine learning professionals. By providing cost-effective, cloud-based services, you can offer the functionality of machine learning to small businesses that might not be able to afford it otherwise.⁸

4. Cloud computing services

Because of the resources required to power modern IT applications, it’s often cost-prohibitive for businesses to house all of their services on-site. Cloud computing services give them access to scalable data management solutions. Serverless computing platforms let businesses store all of their data and applications in the cloud. This provides redundancy in the event of natural disasters or other types of business interruptions. With more businesses moving to the cloud, you can also offer cloud migration services for businesses that are moving their data.⁹

5. IT support and managed services

For many businesses, IT support is a distraction from their primary business operations. Outsourcing these services allows businesses to focus on their core functions instead of auxiliary tasks. You can fill this need by providing remote IT support for small and medium-sized businesses, including on-demand IT helpdesk services. You can also provide IT infrastructure management for enterprises that are looking to outsource these services.

These services can include setting up, configuring, installing, and managing networks and endpoints for businesses. Modern companies are subject to increasing amounts of cybersecurity regulations and requirements. Outsourcing these requirements can free up businesses to concentrate on their areas of specialization instead of regulatory requirements.¹⁰

6. E-commerce IT solutions

E-commerce has become a wildly popular business model as consumers embrace the convenience of shopping online rather than in person. You can access this market by providing custom e-commerce platforms, payment gateway integration services, and AI-powered product recommendation systems.¹¹

These services can help e-commerce businesses that sell either to other businesses or directly to consumers. Your products and services can help them operate more efficiently.¹¹

Bring technology startup ideas to life

An online MBA from the University of Kansas will help you develop the skills you need to succeed in today’s business environment. Our engaging curriculum, taught by experts in the field, will prepare you to build and lead innovative startups. Review details about our admissions process and contact one of our admissions outreach advisors today to learn more.