Startup Factories: Spotify
Meet 130+ startups founded by former Spotify operators—who’ve raised over $2.8B—plus a look at Spotify’s $40B in creator payouts
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STARTUP FACTORIES
We recently launched a new series called Startup Factories—spotlighting the latest operators who’ve left their roles to start something new. The series explores which companies are consistently producing founders—and how successful those founders are in building the next wave of startups.
This edition highlights former Spotify operators who have gone on to launch their own ventures.
ABOUT SPOTIFY
Spotify is one of the world’s leading music streaming platforms, revolutionizing how people access and experience audio content. Launched in 2008 in Sweden, Spotify capitalized on a growing demand for digital music consumption while addressing the rampant piracy that plagued the industry. By offering users legal access to millions of tracks through an intuitive interface and freemium model, Spotify shifted the paradigm from ownership to access, reshaping the music business in the process.
So far, they have:
Creators: Paid out more than $40 billion to creators.
Global scale: As of 2025, Spotify has over 600 million users across 180+ countries, including more than 260 million paying subscribers.
Spotify Wrapped: Created a viral annual tradition showcasing users' music tastes, now a global cultural event.
Share price: Their share price has risen significantly since its IPO in 2018—which may soon reach $800 USD per share.
THE COMPOUNDING EFFECT: BY THE NUMBERS
When founders leave established companies, some go on to raise millions in capital and build teams of hundreds. Looking at the data on Spotify operators turned founders, the numbers are especially striking. They include:
The startups have raised $2.8 billion to date.
Most founders did not attend Ivy League universities—instead, attending business schools and universities, mostly in Stockholm.
Categories most of interest to founders to build: AI, Consumer (including the creator economy), SaaS, FinTech and Health.
Startups are building in Sweden (where Spotify is HQ’d).
The startups have created 3,000 jobs (current employees).
Founders most commonly held either a Product or Software Engineering role before founding.
Let’s take a closer look at the type of startups founders are building.
CATEGORIES FOUNDERS ARE BUILDING IN
AI once again tops the charts as the most popular category chosen by founders. Several interesting startups are emerging in this space, including:
Bagel AI is the first AI-native Product Intelligence Platform. They help product and go-to-market teams stop guessing and start building what actually drives revenue.
Wondercraft makes it easy to produce studio quality audio content, using AI voices, in 50 languages.
Tandem Health writes medical notes themselves.
Following AI, founders are also building in Consumer, SaaS, FinTech and Health.
NUMBER OF STARTUPS BEING FOUNDED
Former Spotify founders have gone on to build 85+ startups, each raising at least $1M from investors. We break down how many startups have been founded by year.
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COUNTRIES FOUNDERS ARE BUILDING IN
The U.S. remains ahead of the pack, but it's great to see Sweden securing second place. With Spotify headquartered in Sweden, this might suggest that more founders are choosing to build in their home country rather than relocating abroad.
HOW WELL THE STARTUPS ARE PERFORMING
Current data shows that most startups are at the Seed stage with a number progressing towards Series A and beyond. The total amount of capital the startups have raised to date is $2.8 billion.
AVERAGE FUNDING ROUNDS
From our data and research, founders are currently raising the average funding rounds per stage:
Pre-Seed: $1.9M.
Seed: $3.4M.
Series A: $11.2M.
TYPES OF ROLES HELD BY FOUNDERS BEFORE FOUNDING
Most founders come from technical backgrounds, often having worked as Product Leads or Software Engineers. Less common roles before founding include those in Marketing and Sales.
MEET THE ALUMNI & THE FASTEST GROWING STARTUPS
Discover the latest startups founded by former Spotify operators who have raised at least $1M.
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BONUS: MEET THE LATEST STARTUPS BUILDING IN STEALTH
In addition to the 85+ funded startups who have raised a minimum of $1M, you can also discover the latest 45+ founders building in stealth. Some of these startups might just be the next breakout company.
