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Entrepreneurship & Startups vocabulary · Fundraising & Investors

Lead investor

Meaning in entrepreneurship & startups, with examples

/ˈliːd ɪnˈvestər/nounCommon term

In entrepreneurship & startups, lead investor means: The investor who puts the largest amount into a funding round, sets the main terms and often encourages other investors to join.

In Turkish: lider yatırımcı, öncü yatırımcı

How it is used

Founders often say the hardest part of a round is finding a lead. Once a lead commits, others follow; they are called followers or co-investors. The lead investor usually negotiates the term sheet and may take a board seat.

Example sentences

  1. We have 400,000 in soft commitments, but we still need a lead investor.

  2. The lead investor asked for one seat on the board.

Common collocations

  • find a lead investor
  • lead the round
  • co-investor
  • follow-on investment
  • funding roundA planned period in which a startup raises a set amount of money from one or more investors, usually on the same terms and at the same valuation.
  • term sheetA short document that lists the main terms of a proposed investment, such as the amount, valuation and investor rights, before the final legal contracts are written.
  • venture capitalMoney that professional funds invest in young, fast-growing companies in exchange for equity, accepting high risk in the hope that a few big winners pay for the losses.
  • board of directorsA group of people elected to oversee a company's management and make major decisions, such as approving budgets, fundraising, key hires and the sale of the company.
  • Series AThe first major venture capital round after seed funding, raised when a startup has real traction and needs money to grow a model that already works.

More terms: Fundraising & Investors

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