lead-investor-negotiation

Vocabulary Word

Definition

In a 'lead investor negotiation,' the main or lead investor and the company needing investment discuss and agree on important terms. These terms include how much money gets invested, the company's valuation, and the investor's rights and privileges.

Examples in Different Contexts

In startup financing, 'lead investor negotiation' is a key phase where the investment amount, dilution, and rights are determined. A startup CFO might say, 'Our lead investor negotiation focused on minimizing dilution while securing the funds we need for expansion.'

Practice Scenarios

Startup

Scenario:

We've recently received a term sheet from our potential lead investor. There are a few clauses that we need to discuss and clarify.

Response:

Let's prepare well for the lead investor negotiation so we can understand and navigate these clauses efficiently.

Private Equity

Scenario:

Our due diligence has revealed a few issues with the target company's financials. It may impact our negotiation stance with the lead investor.

Response:

Let's re-evaluate the buyout terms during the lead investor negotiation considering these financial discrepancies.