This question makes founders more annoyed than any other when pitching VCs:
Who else is investing?
But hereโs the thing - it's actually a valid question, especially for investors who are not leading rounds.
~๐ฑ๐๐ฐ๐ธ๐ ๐ณ๐ฟ๐๐ถ๐ป๐ด ๐ฝ๐ฎ๐ป ๐๐ต๐ฟ๐ผ๐๐ป ๐ฏ๐ ๐ฎ๐ป๐ด๐ฟ๐ ๐ณ๐ผ๐๐ป๐ฑ๐ฒ๐ฟ๐~
Look, I get it. It must feel incredibly frustrating when an investor asks who else is investing and then barely pays attention on the pitch call if they don't like your answer. Those investors exist and they are lame.
But early-stage founders know who is on the cap table matters intrinsically. All the pitch deck slides that show the faces of prominent angel investors in the company are there for a reason.
It's just a fact that your investors do matter, especially the lead ones. A couple points there:
There are fewer leads around today. Number of funds leading a Seed or Series A round on Carta has trended lower even as the number of funds investing into those rounds has risen in the past few years.
Leads are eating up share of round (see chart below). If you're a small check into a startup, knowing the identity of the fund / GP who is taking 75% of the round definitely matters.
A small check investor would have the same questions that a founder might about the lead. Will they be able to take their pro rata at the next round - or lead the next round? What kind of signal is it if they don't? Does this lead bring real expertise in the business the founder is creating?
Again, we want VCs to be independent thinkers, not lemmings, and to be willing to take bets that others do not. We should celebrate the first check in!
But asking who else is investing, or more pointedly who is leading the round, does not a bad investor make.
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ยฉ 2026 Carta. All rights reserved. Reproduction prohibited.
