Lead investor

The investor who organises a funding round, typically negotiating the terms, coordinating diligence and often taking a board seat.

Example

A seed fund setting the valuation and terms that other angels then join.

Important

Following a lead does not replace your own judgement about the investment.

Related terms

  • Syndicate — A group of investors pooling money to invest in a single company alongside a lead investor, typically through a special purpose vehicle.
  • Term Sheet — A short document setting out the main economic and control terms of a proposed investment before full legal agreements are drafted.

Lessons that explain it

  • Good co-investors share deals, diligence and the hard conversations — Relationships with other investors - syndicate leads, angels and funds - provide deal access and shared diligence. They are built on reciprocity, reliability and honest views about deals. (10 min)

All 578 terms in the Investing glossary