Just like anything its hard to get people to do things, and a lead investor is the type of person that can get his fellow investors to sign on the line, and get things moving.

Even in a mass syndication you can’t proceed effeciently without a lead. Things will just get bogged down because no one wants to do the actual work. It will fall on the entrepreneurs shoulders, and it will be much more difficult than if you have one of their peers making the rounds to get the deal done.

I saw a great syndication taking place in the Boston area a few months ago, and it was the lead driving the ship. The lead investor went and pitched all the different angel groups, and got the entrepreneur on the fast track. When the entrepreneur found new investors, he just told them to contact the lead, and the lead did everything.

Great post!