Startup Funding Espresso – Party Rounds – Going Without a Lead Investor

Party Rounds – Going Without a Lead Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, many founders believe they can't raise funding without a lead investor. At the seed level, this is not necessarily the case. Founders should launch their fundraising campaign with a convertible note so it's easy for the investor to join the round. Since valuation is not set, there's no need for a lead investor to start it. There is a valuation cap, but this means the valuation will be set later. At the seed level, it can be hard to agree upon valuation, so it's best to set it when there's more information available. Founders can fund their early rounds without a lead investor. At the seed level, founders can find enough funding to close the round. This is called a party round. Many but not all investors will provide support to the startup. In launching a Series A raise, one should start with a convertible note to pick up funding from investors while in pursuit of a lead investor. Consider a party round for your seed fundraising. 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. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.