Six years ago, most Americans couldn’t imagine working on their own. But when the pandemic upended the world of work, newly laid-off workers started piecing gigs together – walking dogs; driving for Uber or Instacart – to make ends meet. After Covid broke out, 3.1 million Americans entered the gig workforce and new business formation surged, with applications hitting a record in the year after the pandemic began.
According to more recent data, many of those workers never went back to their full-time roles. Today, more than 5.6 million Americans are independent workers earning more than $100K, a number that has doubled since 2020. Some tech CEOs believe that the world will see a one-person, billion-dollar company — the so-called “solopreneur unicorn” that could be founded in 2026, if not already.
As the number and type of small businesses accelerates, demand for technology platforms that empower small business owners is increasing — fueling the growth of a significant market opportunity for both entrepreneurs and investors.
According to the U.S. Chamber of Commerce, 84% of small business owners plan to increase technology use, and 96% plan to adopt emerging technologies. We’re already beginning to see growth in the data.
Last November, Shopify – the go-to ecommerce platform for many online small businesses – beat Wall Street expectations with double-digit growth for the past two quarters. Despite its stock price being pulled down in recent weeks by the AI-related retreat from software, Shopify hit a new record for revenue in Q4 and its GMV growth increased from +20% in 2023 to +29% in 2025. Toast, the point-of-sale solution for small restaurants, reported that its annualized recurring run rate grew 30% to $2 billion as of the end of the third quarter of 2025.
Those companies’ success is a bellwether for an emerging category of small business tech that understands its audience. Rather than learning lessons the hard way, specialized platforms with sector-specific advice give new market entrants access to hard-won knowledge from day one, reducing risk, improving quality, and building business acumen. And at a time when small businesses are among the fastest-growing sectors of the economy, that approach is worth investing in.
Tech for small business
Consider a startup like Manifest, backed by SimpliSafe founders Eleanor and Chad Laurans, which is betting on the fact that many high-growth sectors like pet care or beauty have historically been underserved by big tech. One of their fastest growing brands, Dog Gurus, is filling that void for the growing number of American entrepreneurs who have started pet care businesses in what is now a $152 billion industry.
As one ‘petrepreneur’ who used the platform explained, Dog Gurus (which operates on a subscription model) helped him to identify and fix a dozen safety discrepancies, including loose bolts and latches that were not working properly — the sort of tactical, concrete recommendations he needed to launch a facility that is now serving 84 dogs.
Benefits access startup Besolo, founded in 2024 as solopreneurship surged, was built to solve for the operational challenges like tax, compliance, and retirement. And it’s paying off: Besolo was acquired last fall by the solopreneur-focused financial tool Lettuce.
Other startups focused on small business have found success with an even more specific focus. Qnity provides both hands-on consulting and data for salons and beauty professionals. They’re creating community among small businesses who can share challenges, ideas, and best practices to boost revenue and profitability.
A16Z-backed startup Wonderschool is taking a similar approach in the childcare space, providing software to support childcare entrepreneurs with critical challenges like licensing, quality, marketing, pricing, and a range of other back-office tasks. In addition to Andreessen Horowitz, it netted investment from Goldman Sachs and others who recognized the need for technology to boost supply within our nation’s childcare “deserts.”
Investor opportunity
As the number and type of small business owners and operators continues to grow, the need for more than generic advice on P&L or market entry is growing too. Just as gig platforms reshaped work a decade ago by lowering the friction to participation, the next wave of small business software will define how millions of solopreneurs build durable, scalable businesses. The winners won’t simply automate tasks—they’ll reduce complexity, provide guidance, and let small business owners focus on their areas of skill and strength, rather than the nuances of running a business.
Our economy has always relied on small businesses, which encompass over 50% of the GDP. But it’s the tech platforms that quietly power them that may offer the next big space for investors.
Ashley Bittner is managing partner at Kalos Ventures.
