Monday, December 19, 2016
Lessons Learned Seeking Funding -- Ventures need a "lead" investor
The "lead" investor is somebody who has invested in similar deals before and has been successful. They know the industry(-ies), the players, the rules, etc.; they have credibility and do most of the talking in meetings with potential future investors when the company is ready to ramp up. The lead investor does not necessarily have to be the first person to invest in a venture, nor do they have to be the biggest investor in the deal, but their investment should be substantial and it should be long-term. Obviously, it helps if the lead investor knows -- or, perhaps, develops meaningful relationships with -- VCs or other candidates for subsequent investment.