Ex-tech execs’ startups find favour with VCs, says report

Operator-led startups, founded by former tech professionals, represent less than 1% of tech startups founded between 2023 and 2025, but their share of ecosystem funding nearly doubled to 11% in 2025 from 5.8% in 2023.

These startups consistently receive larger funding rounds and higher valuations at early seed and Series A stages compared to other startups.

A report by Tracxn and RTP Global analyzed operator-led ventures, noting they now land one in ten of $1 million-plus funding rounds.

New operator-led startups increased to 50 in 2025 from 37 in previous years, despite a contraction in the broader tech startup space from 7,805 in 2024 to 2,633 in 2025.

Nishit Garg of RTP Global said operator-founders bring execution focus and capital discipline, which become more valuable as AI changes how products are built.