Who is a lead investor?

Who is a lead investor?

A lead investor serves as the crucial liaison between the company and other potential investors, typically demonstrating a strong commitment by investing in the venture.

The lead investor collaborates with the company to establish funding round terms and assist in determining its pre-money valuation.

Typically, the lead investor substantiates their commitment by allocating a significant share of the round, often ranging from 30% to 80%. Nevertheless, it is noteworthy that there are circumstances where the lead investor’s contribution may not constitute the most substantial portion of the investment round.