Lead investment is the investment that closes and attracts the remainder of the investment in the funding round. A lead investor provides the initial capital that a business needs to start and takes on the most risk. They also strongly influence how the company is run and provide invaluable guidance.
A lead investor can be key to the success of your fundraising campaign. By researching, making a strong pitch, and being prepared to negotiate, you can increase your chances of securing their involvement. The first investor in a startup's funding round.
They are responsible for guiding the other investors and negotiating the round terms. Choosing a lead investor with previous venture capital experience or who knows the industry well is important. Having this credibility can attract other investors and help the lead investor negotiate better terms for the company.