Startup Funding Espresso – What Are Co-Lead Investors?

What Are Co-Lead Investors?

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

The lead investor typically takes up to half of the round in return for leading the diligence and setting the valuation.

When there is a great deal of work to be done and no single investor will take the lead then one can recruit a co-lead investor.

A co-lead investor will join to help with the diligence.

In this case it’s best to build a lead investor team.

It’s important to divide the diligence tasks among the members so everyone does their share of the work.

Some consider the co-lead investor as lacking in interest or commitment.

But with the amount of work to be done, it’s not uncommon for investors to look for other ways to accomplish the work.

Startups can build lead investor teams to facilitate their funding round.

Founders can pull several investors together into one group to perform the diligence and share the results.

This often speeds up the funding process as investors look to others for feedback and experience.

Consider building a lead investor team on your next fundraise.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.

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