Co-Investment
Definition
A co-investment is when multiple investors join the same round alongside each other, or when a fund’s LPs invest directly in a deal alongside the fund.
How it comes up in fundraising
Most venture rounds are syndicates of co-investors: a lead sets terms and others fill the round.
Frequently asked questions
Why do investors co-invest?
To share risk, fill rounds larger than one fund wants to write, and combine different value-adds behind one company.
Who are co-investors on a typical seed round?
A lead seed fund plus angels, micro funds, and occasionally a strategic, all on the lead’s terms.
Related terms
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