Whenever a potential investor tells me that they are ‘waiting on a lead’, this indicates that they are not capable/confident enough to make an investment right now.
Here’s the dilemma – once you have a lead investor, it will be way way easier to get investors to follow. So these ‘follow-only’ investors who hang around you early in the process are actually not that valuable.
Even though it’s tempting to keep around people that seem like they may want to give you money, I would be extremely wary of these folks. At best, they’re time-wasters. And at worst, they’re trying to earn an ‘option’ to buy your stock at a future date when someone else has taken the first (and biggest) risk on you.
Split them into two groups:
- Investors that are money-only: I would play hard-ball with these folks. Their value is limited anyways, so try to pressure them to commit money early, with the implicit (or explicit) understanding that it’s now or never for them to get into this round. Worst-case, you lose a weak investor. Best-case, you close easy money.
- Investors that are money + value: If they are truly interested and valuable, keep them on your list at an early part of your investor ‘funnel’. These are people that should get update emails when you convert investor commitments, sign pilots, or get positive press, but not people who you need to spend time meeting and pitching. Prepare to close them quickly once your lead investor signs.