Developer Tool

2 Developer Tool Success Stories [2024]

Pat Walls

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Updated: October 10th, 2024

Looking to empower developers and streamline software creation? Consider starting a developer tool business. Developer tools are software applications designed to assist programmers in building, testing, and optimizing their projects.

In simple terms, you’d be creating powerful utilities that help developers code more efficiently, debug effectively, and maintain high-quality software. Whether it's a code editor, project management dashboard, or automated testing suite, your tool can become an essential part of a developer’s toolkit.

The demand is growing as more industries pivot to digital solutions, and developers are constantly seeking ways to boost productivity. By starting a developer tool business, you can tap into this need, providing valuable resources that enhance the coding process.

Building such tools requires an understanding of software development and the challenges developers face. But for those willing to dive in, it offers a meaningful way to contribute to the tech community while establishing a lucrative business.

In this list, you'll find real-world developer tool success stories and very profitable examples of starting a developer tool that makes money.

1. Retool ($90M/year)

After graduating from Oxford University with a degree in philosophy and computer science, David Hsu founded Retool six months later.

During his time at university, he developed Cashew, a payment app for the UK market. While building his startup, David encountered the difficulties of creating and expanding internal tools for tasks such as KYC and fraud management.

He observed that engineers often had to develop admin dashboards from the ground up, and he found this process to be undesirable. This experience inspired him to create Retool, a low-code tool designed for both technical and non-technical developers.

How much money it makes: $90M/year

How David Hsu Scaled Retool To $93M ARR

"Retool founder David Hsu revolutionized software development, generating an impressive $7.5M/month and $90M/year in revenue since 2017 without writing code from scratch."

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2. Tailscan ($38.1K/year)

Erwin, an IT consultant with eight years of experience, built Tailscan after a demo video showcasing his Tailwind CSS browser extension garnered 22,000 views and 570 likes on Twitter. The tool now boasts recurring revenue of almost $30k annually, with a 95% profit margin.

How much money it makes: $38.1K/year
How much did it cost to start: $100
How many people on the team: 0

I Hacked My Product in One Week and Now Make $30K/Year

This case study follows the journey of Tailscan, a browser extension for front-end developers that allows live styling changes on any website using Tailwind CSS, which has achieved almost $30k in recurring revenue annually with a 95% profit margin, as well as $23k in one-off revenue, within a year of its launch.

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Read by 3,731 founders