At the seed stage, operator-led startups founded in 2022 secured 11.2% of all seed funding rounds, significantly outperforming their non-operator counterparts, a trend that has continued into 2023 and 2024.

Several factors are driving this trend, including liquidity from ESOP buybacks, a desire for new challenges, the return of talent from the US, and widespread layoffs across various sectors.

Neha Singh from Tracxn highlights the evolving startup ecosystem and the diversification of founder profiles, indicating a shift in how startups are being built.

Nishit Garg from RTP Global points out that the pragmatic mindset of operator-founders is crucial for efficient scaling, contributing to their success.

The fintech and insurtech sectors have led in capital attraction, securing $89 million, followed by energy and sustainability with $40.3 million, and supply chain tech at $30 million.

The most active sectors for operator-led ventures include fintech, e-commerce, edtech, enterprise SaaS, and healthcare, underscoring the importance of operational experience in achieving early success.

In 2024, operator-led ventures accounted for 11.5% of all venture funding, up from 6% in 2023, showcasing their increasing significance in the startup ecosystem.

A recent analysis by RTP Global, utilizing Tracxn data, reveals a notable rise in operator-led startups in India, with 238 former operators transitioning to founders between 2022 and 2024.

The average seed round for operator-turned-founders was $1.56 million, surpassing the $1.3 million average for other startups during the same timeframe.

While the average Series A round for operator-led startups was $8.2 million, lower than the $9.6 million for other startups, they achieved higher valuations of $38.5 million compared to $21.8 million, leading to less dilution.

Operator-led startups have shown remarkable growth, with 7.1% of ventures founded in 2022 advancing to Series A funding, a stark contrast to just 0.3% of other startups.

In 2024, these operator-led startups raised $101 million, reflecting a staggering 243% increase from the previous year and nearly doubling the $52.9 million raised in 2022.