How Do I Know If an Investor Is a Lead or a Follower?

Lead investors set terms, write the largest checks (50–70% of the round), conduct primary diligence, and typically take board seats. Followers invest smaller amounts alongside an established lead without setting terms.

Check their fund size, typical check sizes, whether they take board seats, and how they describe their investment approach. Ask directly: "Do you lead rounds at my stage?" Investors who say "we typically co-invest" or "come back when you have a lead" are followers. Knowing this before you pitch saves time and structures your outreach correctly.

Why the Distinction Matters

Pitching followers before you have a lead wastes time:

Followers can't move first: They wait for someone else to set terms and validate the deal.

They'll defer: "Interesting, let us know when you have a lead" is their standard response.

Your pipeline stalls: You collect "interested but waiting" responses instead of commitments.

Sequencing breaks: Rounds are built around leads; approaching followers first inverts the process.

Identify leads early and focus initial outreach on them. Bring in followers once terms are set.

Signs of a Lead Investor

1. They Set Terms

Leads negotiate and establish:

• Valuation (pre-money and post-money)

• Round size and structure

• Key deal terms (liquidation preferences, board seats, pro-rata rights)

If an investor says they'll "draft the term sheet," they're a lead.

2. They Write Larger Checks

Leads typically invest 50–70% of the round:

• Seed lead: $750K–$2M in a $1.5–$3M round

• Series A lead: $5M–$10M in a $10–$15M round

Small check writers ($50K–$250K at seed) are almost always followers.

3. They Take Board Seats

Board seats signal commitment and accountability. Leads take seats; followers rarely do.

Ask: "Would you expect a board seat with this investment?"

4. They Conduct Primary Diligence

Leads do the heavy lifting:

• Customer reference calls

• Financial and metrics deep-dive

• Market research

• Legal review

Followers often rely on the lead's diligence rather than duplicating work.

5. Their Fund Size Supports Leading

Fund economics determine leading capacity:

• $20–$50M fund: Can lead seed rounds

• $100–$300M fund: Can lead seed and Series A

• $500M+ fund: Typically leads Series A and later

Very small funds and angel syndicates usually follow.

For more context on different investor types, read our guide on angel investors vs venture capital: key differences explained.

Signs of a Follower Investor

They use follower language: "We typically co-invest alongside a lead" or "Let us know when you have a lead."

They write smaller checks: $50K–$300K at seed can't anchor a round.

No board seats: Less commitment indicates follow position.

They move slowly: Express interest but won't advance until someone else commits.

How to Confirm Lead vs. Follower Status

Ask directly. The simplest approach:

• "Do you lead rounds at seed stage?"

• "What's your typical check size for a lead investment?"

• "Would you set terms, or do you prefer to follow an established lead?"

Research their portfolio. Look at recent investments, did they lead or follow? Press releases often mention who led.

Check fund size. Very small funds rarely lead; their economics don't support it.

Review their website. Many investors explicitly state whether they lead or follow.

Use SheetVenture's intelligence tools to identify which investors actively lead rounds at your stage.

Structuring Your Outreach

Phase 1: Target lead investors first. Get term sheets and commitments.

Phase 2: Once you have a lead, approach followers to fill out the round.

Don't mix phases. Pitching followers early creates noise without progress.

The Bottom Line

Lead investors set terms, write large checks, and take board seats. Followers invest smaller amounts alongside established leads. Identify leads early and focus initial outreach on them, followers come later.

Questions about identifying lead investors? Talk to our team.

SheetVenture helps founders distinguish leads from followers, so you pitch the right investors at the right time.