RRZ.com Investments

What is the definition of a "lead investor" for those interested in starting up an investment business?

What role do they play and typically what are the obligations on both sides?

Public Comments

1. The lead investor is the heavy hitter person or group who usually invests first and with the largest amount of money. For Example, you may have a $2MM investment. The lead investor would be the guy who puts in $1.2MM believing that you are going to be able to raise the other $800K. The lead investor usually has the deepest pockets and picks up the pieces if there are problems in the business. Either that, or he drops the ball and the deal falls apart if additional funs are needed.