investorsMy company is looking to raise a Series A round. My understanding is that there will generally be a lead VC that is in charge of the following:
It seems the lead investor does more work than the other investor participants. How does the lead investor get compensated for that work? Do they get a better valuation than the other investors? Do they get “karma” with the other investors? Do they get other privileges?
I read an awesome book once - Venture Deals and if I remember correctly one the biggest benefits a lead investor has is that they get to set the terms from the investor end i.e. what ever favors that particular lead investor. Usually for experienced VC's they already have a bunch of people who can carry out the due diligence for them while they also have a pool of other VC's they can rope in to contribute to the round. True on paper it sounds a lot but like I said for an experienced VC getting their terms on the board is their end goal.
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