The big concern with what I read is that you need to set your own proposed term-sheet slightly below market.
I'm not sure why a startup would want to do that.
There was also no real explanation as to why you wouldn't want a lead investor, or what is wrong with having one.
It feels like this is doing something different for the sake of it, and fund-raising seems to be a prime time when you don't want to do anything unusual or different to the norm as it could spook investors and close doors.
One reason to not want a lead investor is because you can't find one. Sometimes you'll get a lot of verbal confirmations, but no one deal champion... so why wait for a lead, just take the money and move on.
The message from both PG and the VH guys seems to be this style is on the rise, especially among the best startups -- so there shouldn't be a "this is different and spooky" effect.
In the article Nivi rephrases "below market" as "priced to move" -- to create excitement and eliminate the need for lengthy due diligence. Leaving a little on the table could make sense for a faster, more-likely-to-finish-without-a-hitch round.
I'm not sure why a startup would want to do that.
There was also no real explanation as to why you wouldn't want a lead investor, or what is wrong with having one.
It feels like this is doing something different for the sake of it, and fund-raising seems to be a prime time when you don't want to do anything unusual or different to the norm as it could spook investors and close doors.