Institutional Investor
Definition
An institutional investor is a professional organization investing pooled money: venture funds, pension funds, endowments, sovereign wealth funds, and insurance companies.
How it comes up in fundraising
In startup fundraising, “institutional round” usually means the first round led by a professional VC fund rather than individuals.
Frequently asked questions
Why does the first institutional check matter?
It brings professional diligence, a lead to set terms, usually a board presence, and validation that eases later fundraising.
Are angels institutional investors?
No; angels invest personal money. Syndicates and micro funds sit between the two.
Cite this term
Round Funded. "Institutional Investor." Startup Fundraising Glossary.
Stable URL, it will not change: https://www.roundfunded.com/en/glossary/institutional-investor
Related terms
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