Anchor Investor

An anchor investor is a key early investor in a funding round who commits a significant amount of capital, providing credibility and confidence for other investors to join. Anchor investors often negotiate favorable terms in exchange for their early commitment, and their involvement is crucial in setting the tone for the rest of the investment round. They are especially common in initial public offerings (IPOs) and private equity funding rounds.

• Early investor providing credibility to a funding round.
• Encourages other investors to participate.
• Often secures favorable terms for early commitment.
• Common in IPOs and private equity deals.