1. If they take more time -- since there is no lead investor to drag other investors in, the entrepreneur has to do that work. I don't know how this works out;

1. If they take more time -- since there is no lead investor to drag other investors in, the entrepreneur has to do that work. I don't know how this works out; it's certainly easier to convince someone to invest a small amount where they know they won't have to be the lead investor. 2. If they take too much money, and feel they need to increase their burn rate because of how much they have in the bank. 3. There isn't a lead for the entrepreneur to go to to discuss decisions -- "So if e.g. the entrepreneur wants to sell the business, she may often discuss it with the lead investor rather then having to tie in to all investors." 4. If the valuation is too high, the investors will want a higher exit to get their money back. 5. If no one gets on your board, you may not be able to get the advice you need. I don't know how accurate those points are, but each seems possible to me. I've never been involved in a startup, so take them with large grains of salt.