Lead investor

How it works

Most early-stage rounds need a credible lead before other investors will commit. The lead typically writes 30–60% of the round and signs the first term sheet. Founders should spend most of their fundraising energy securing a lead — once a lead is committed, filling out the rest of the round is much easier. Leads almost always join the board.

Related terms

• Term sheet
  A term sheet is a non-binding document outlining the key terms of a proposed investment — valuation, amount, board seats, liquidation preference, anti-dilution, and other rights.
• Series A round
  A Series A is typically the first priced round led by an institutional VC, with a $5M–$20M check size, requiring strong evidence of product-market fit.