Before becoming an investor in BreadI was a startup founder. I know what it's like to stand in front of a room full of people, with sweaty palms, asking them to believe in me. I also know the relentless effort it takes to prove, time and time again, that their faith – and their money – will be rewarded. My journey from founder to funder was shaped by these experiences, and it's why I approach investing differently.

As a founder, I benefited most from investors who went beyond providing capital. They mentored me, guided me through difficult decisions and became true partners in my entrepreneurial journey. Now, as an investor, I aspire to provide the same support to the founders I back, because it's something the startup world has been missing for a long time.

it the transition from founder to financier it's not unique to me—I'm seeing a growing number of entrepreneurs taking their hard-earned experience and applying it to venture capital. Additionally, there is a growing number of former founders taking on strategic advisory roles for new companies. These “hired founders” aren't just giving advice from the sidelines; they are applying years of entrepreneurial experience to help today's founders plan, execute and grow their businesses.

Both founder-to-investor and founder-for-hire are transforming the way startups are funded and nurtured, and I believe it will have a profound impact on the startup ecosystem for years to come.

Related: How Saying 'Yes' to Every Opportunity Helped My Startup Make $1M in Year One

A unique perspective

Successful VC founders have investments success rates that are 6.5 percentage points higher than professional VCs. This does not surprise me. Founders-turned-investors bring something to the table that isn't common in the VC world: operational knowledge. They have experienced the highs and lows of startup life, understand the challenges of growing a business, and have a keen eye for identifying promising ventures. Investors with startup experience can connect with founders on a deeper level, providing insights that traditional investors may miss.

My co-founders and I built our first product company, Densityfrom the ground up, which has shaped my approach to supporting my portfolio companies. It is a common misconception that innovation in business is about technological discovery, when in fact it is about solving “boring problems”. I look for founders who are as excited about their hiring practices, operational processes and financial planning as they are about their product development. When you're excited about the boring stuff, you build better products and run a more sustainable business. I wouldn't know this without the first-hand trial and error experience I gained as a founder.

How experiences shape investment strategies

If you're a founder looking to raise capital, here's why you want to look for an investor with initial experience:

1. Emphasis on product and market fit: By creating products himself, a founder-turned-investor is able to quickly assess a startup's potential to solve real-world problems.
2. Realistic expectations: They understand the challenges of scaling and are often more patient with growth trajectories.
3. Focus on the basics: They tend to prioritize sustainable business models over advertising-driven metrics.
4. Empathy for founders: They are more likely to support passionate founders who demonstrate grit and adaptability.

Experienced seed investors also provide much more than access to capital, often offering founders access to their network, partnership opportunities and guidance on every part of the business.

The importance of practical involvement

One of the most important advantages a founder-investor brings to the table is a willingness to roll up their sleeves and are included in the portfolio companies. They often want to know the details of product development in each company they invest in and the operational challenges they are facing.

Are they struggling to hire the right people? Do they lack clear processes for project deliverables? Are they conflicted about which product features to prioritize?

Whatever the challenge, founders-turned-funders aren't afraid to get in the trenches with their portfolio companies. Personally, I have spent hours helping founders reshape their visual identity, refine their marketing strategy or even relaunch their product if necessary. In many cases, I am literally in code with them.

Investors who have started their own companies know how difficult it is. They want to provide emotional support and guidance through the intense ups and downs of startup life. By being a sounding board for the founders I work with, I hope to make the journey a little less stressful, which can make achieving success a little easier.

Related: What should you value more – an investor's money or their experience?

The future of the founder-led startup ecosystem

Just as founder-led venture capital firms provide early-stage entrepreneurs with access to operational guidance, working with a consultant who has built their own company can provide invaluable mentoring opportunities.

What sets a hired founder apart from a traditional consultant is the depth of their involvement. They're not just helping startups perfect their sales moves or go-to-market strategies; they are actively shaping products, helping to find market fit, and even helping to build teams. It's a level of commitment that goes beyond the typical consultant-client relationship. It's also a flexible way for startups to leverage years of experience without having to hire someone full-time or give up a lot of capital.

Having a founder-consultant on your team is one of the smartest things you can do as an early stage entrepreneur. The combination of hands-on experience is invaluable in those early stages of business growth.

Related: I Moved From Founder To CEO 20 Years Ago And Never Looked Back – Here's How To Make The Jump Successfully

Crossing the gap

The rise of venture capitalists and consultants turned founders is changing the game for both venture capital and startups. Blending financial knowledge with the real-world experience and hands-on involvement of former founders, these new players offer a unique level of business development and growth potential for new companies.

For young entrepreneurs, this means a more supportive and understanding investment landscape. And for the startup ecosystem at large, it means a clearer path to success for everyone involved.