What Makes A Lead Investor?

Decent Essays
If you are setting up a new business, one of the first things you need to start thinking about is finding financing. When it comes to start-up funding, investors are often the best way to channel initial funding to your business. This guide will look at one of the most crucial aspects of financing: finding the lead investor. You can learn about what a lead investor means, why finding one matters for your business and the things you should look for before you begin searching. You’ll also be able to understand the four crucial steps to finding a lead investor. What is a lead investor? Anyone looking for funding for business must be aware of the difference between a lead investor and an investor. In short, lead investors tend to be much more involved in the business, both in terms of the amount of money they provide for the business and the information they might receive on a monthly basis in terms of operations. The Business Dictionary defines a lead investor as 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 investors” A lead investor can be a single individual or an investor group. The key difference to other investors is the commitment of lead investors. Lead investors are able to work closely with the business and provide their expertise and time for the business. In many instances, the
Get Access