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From Pitch to Payday, The Hidden Costs of Fundraising: Featuring Sam Simpson

Not My First Guess

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Key Roles of a Lead Investor

A lead investor is crucial in a funding round, often being the most significant investor who sets the tone for the deal. They initiate the process, handle negotiations, conduct due diligence, and establish key deal terms, including valuation. Valuing early-stage businesses is complex due to high risk, with founders valuing their business higher than investors. Typically, a pre-seed, pre-revenue startup's valuation starts at around 1.5 million. Lead investors play a vital role in guiding the valuation process and ensuring fair terms for all parties involved.

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