Operator Collective was early to bring on operators as LPs. Now it’s doubling down

The idea of cultivating a community of operators asLPs to serve as a resource to its portfolio companies was unique. Many firms are building out their operator teams. Operator Collective is trying to prove that it still has the best model.

The organization raised $92 million for its second fund. In addition to a few institutions, the fund was backed by anLP base of 152 operators, three years after the firm raised its first fund.

While there are a few changes for Fund II, the goal and structure are the same, according to operator collective founder and CEO Mallun Yen.

When she realized there was a gap in the market, she came up with the idea for the model. She didn't think she had the right network to make investments after selling her startup, so she wasn't sure where to start. She realized she was not the only operator who had money to invest but not enough time to vet potential investments.

She wanted to pitch her idea to someone who would be interested in it. At the time, he was the head of go-to- market at New Relic. The pitch sounded right for him.

I had a lot of work to do. I didn't have time to do my own research. The ability to invest through a fund specifically into enterprise tech was attractive to me, once in a while.

Operator Collective is going to deploy Fund II in a different environment than Fund I. The intentionality of their model makes it rise above the rest.

She said that the model was not build and then build a community. We built the model from the bottom up to make it better for operators. It isn't as important as the other things. The operator collective is front and center.

Operator Collective's network has multiple professionals from each area with a focus on underrepresented operators. Portfolio companies can get access to operators better suited to their company and operators can be involved without being overwhelmed.

The pilot program of 25LPs that are all earlier in their career has seen a lot of traction.

Operators were able to bring in deal flow while also helping diligence companies, and this type of model has even fostered some members to join startups in C-suite roles.

Operator Collective believes the connections it can make between its portfolio companies and operator network can cut through the noise and keep it relevant as more firms look to offer a similar value-add.

The entrepreneurs and the market have been exiting. Operator Collective brings a lot of advice to the table for entrepreneurs, that's what the feedback says. It's rewarding for them to get to know a lot of different operators on their cap table.