Your definitions are pretty close. no lead = there's no one investor who particularly stands out (e.g. by taking >30% of the round); a lead would usually drum

Your definitions are pretty close. no lead = there's no one investor who particularly stands out (e.g. by taking >30% of the round); a lead would usually drum up the other investors; with no lead, it's the entrepreneur who drums up the others. no fixed amounts, no closing: with convertible notes (as opposed to straightforward sale of shares, aka priced round) the entrepreneur can be a lot more flexible. The round doesn't technically have a valuation, but it does have a valuation cap: see my write-up http://www.yes-no-cancel.co.uk/2010/05/05/valuation-caps-on-convertible-notes-explained-with-graphs/ http://www.yes-no-cancel.co.uk/2010/05/05/valuation-caps-on-... for an explanation. The amount raised can also be flexible. This doesn't require any more of a leap of faith or any lower valuation than a priced round, and the paperwork is simpler. That's why convertible notes are very popular for seed rounds these days.