Finding a lead investor is a critical part of any startup fundraising campaign. Unfortunately, it isn’t a factor many entrepreneurs really give much thought too until they are deep into their efforts.

As per Forbes Magazine, Securing a lead investor is vital for 99% of startup fundraising rounds. Without one you may not get any traction. You may just spend months spinning your wheels before having to go back to the drawing board. Those are precious hours that are being sucked away from your ability to code and market and clock up real customers and sales.

If you’ve already attempted to pitch or raise money there is a good chance you’ve already been told to come back when you get a lead investor. Most VCs, angels and angel groups are all going to want to know who your lead is. It may be one of the first questions they ask. Few want to go first. Yet, after you secure this position everything can fall into place like a line of dominos.

In fact, once you have a lead you should include the terms and the capital that you are raising in your pitch deck with a reference to the individual or institutional investor that has priced the financing round as social proof. This will help to increase credibility and trust with prospects.

If you wish to learn more, feel free to setup a call.