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Raising Money Is One Of The Toughest Aspects Of Running A Business

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Raising money is one of the toughest aspects of running a business. If you follow the conventional approach, you’ll probably start by seeking out a lead investor to lead your investment round and to attract more investors on board. But what if your business can’t seem to find a lead, are there any alternatives? This guide will look at the benefits of having a lead, but also why it isn’t necessary to have a lead investor. You’ll learn about the different routes you can take to find investment and understanding the right moment for starting fundraising. What is a lead investor? A lead investor is defined as someone who is a: “Partner or investor with the largest share of capital in a syndicated financing arrangement. A lead investor is usually the initiating venture capitalist who takes charge of the deal, and who may also act on behalf of the other investors.” A lead investor would often be the first investor that decides to put money into your business. The investor would act as a catalyst to encourage other investors to follow. A lead investor can be a single investor or you could find an investor entity taking the lead on your fundraising round. In addition, lead investors typically provide a larger share of capita to the business compared to investors who follow later on. This doesn’t necessarily have to be so, but in most instances, lead investors are also the majority providers of funding on the given round. While a lead investor is often considered a big part
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