In early-stage investing, someone needs to take the lead and screen the deals, diligence selected ones, and negotiate the valuation with the chosen ones.

In most cases, the lead investor doesn’t want to be the only one in the deal and promotes other investors to join. 

This promotion process is called syndication.

Most investors are looking for someone else to take the lead and actively follow the deal as it progresses.

As a deal lead, make sure you do the following:

– Set up a strong process for diligence and bring legal, accounting, and other resources that can help in the process.
– Know the deal economics such as valuation, investor rights, control terms, and the path to an exit. 
– Keep other investors informed to attract them to the deal.
– Invest enough of your own funds to show commitment to the startup.
– Coach the startup on fundraising especially for first-time founders.
– Move the funding process forward consistently without stalling out.
– Set aside time to join the board of directors.
– Finally, add value to the startup where you can.

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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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.