Lead Investor Law and Legal Definition

The term ‘lead investor’ is used to refer a person who is the company’s principal provider of capital. S/he may be the first, the largest, or the most influential investor in any given investment round. A lead investor is respected by other investors, and they may make their investment decision based on the participation of the lead investor. Decisions of lead investors may not always be right. Therefore, it is wise to carefully do one’s own investment research. A lead investor is also known as a ‘bell cow investor.’