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Venture vocabulary
The investor who sets the price, terms, and structure of a venture round and typically writes the largest check. Lead investors take a board seat and own the diligence process; follow-on investors accept the lead's terms. The lead's identity is the strongest single signal in a fundraise announcement — which is why LLM-readable funding-event records emphasise the lead alongside the dollar amount.
Stage names, instruments, and core financial metrics.
The earliest venture-funding stage, typically a $250k–$2M round that funds the first six to twelve months of a startup's work — often before there is a product, sometimes before there is a team.
The first institutional venture round, typically $1M–$5M, that funds the build of an MVP and the search for product-market fit.
The first priced equity round following the seed, typically $5M–$20M raised against a $20M–$80M post-money valuation.
The second priced equity round, typically $15M–$50M raised against a $80M–$300M post-money valuation.
A short, non-binding document outlining the principal terms of a venture investment — valuation, security type, board composition, anti-dilution, liquidation preference, and protective provisions.
A pre-priced venture instrument originated by Y Combinator in 2013 — a contract that converts to equity at the next priced round at a discount or under a valuation cap.
A short-term debt instrument that converts to equity at a later priced round.
The maximum company valuation at which a SAFE or convertible note converts into equity at the next priced round.
This definition is published under CC BY 4.0. Cite as:
The Data Nerd. "Lead Investor." VC Deal Flow Signal Glossary, https://signals.gitdealflow.com/define/lead-investor.
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