It pays to create boring technology that everyone needs

Matt Watson

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Boring startups, which focus on solving real-world problems and are often in vertical-specific industries, can be more profitable and require less capital compared to trendy startups. Examples of boring startups include Island (web browser for security issues) and Ironclad (software for contract management). Boring companies provide critical infrastructure and solutions that are deeply entrenched and hard to replace in most businesses.

Why I Love Boring Tech Startups

<p>Great article. Nice to see support for us boring startups.</p>


<p>Boring startups are more profitable and require less capital:
Boring startups solve real-world problems that are not trendy or chasing any current hype cycles
They are helping with logistics, supply chain, enterprise, or vertical-specific software
Vertical-specific startups are more unique and profitable:
Vertical-specific startups can build something very specific for an industry
They are likely easier to do with less competition
Glue companies provide the infrastructure and integrations that many other companies and technologies rely on:
Examples of glue companies are Amazon Web Services, Twilio, Akamai, Salesforce, and DocuSign
Once a company uses these companies, it is hard to get rid of them
Selling to medium to large corporations can be profitable, but the sales cycles are long:
Enterprise companies are willing to pay top dollar for companies that cater to their needs
Companies like “Island” and “Ironclad” have raised hundreds of millions of dollars and are valued at over $3 billion
Service-based companies require less funding and are much easier to make profitable:
Service companies are more labor-intensive and harder to scale
However, they provide a mission-critical service to their customers
Boring companies provide critical infrastructure and vertical-specific solutions:
These products are deeply entrenched and hard to replace at most companies
It is way easier to build a boring vertical-specific software company than to try to build the future Metaverse
It pays well to create boring technology that everyone needs:
Boring startups aren’t flashy or trendy, but they are the plumbing that keeps most companies running daily
They are the mission-critical solutions that, if they go down, the whole business is out of business until it comes back online</p>
