What is the role of a lead investor?

The role of a lead investor is primarily to secure governance rights and set the terms for the investment deal. This involves negotiating the details of the investment, such as valuation, investment size, equity stake, and other critical terms that dictate how the investment will operate. The lead investor often takes on a significant portion of the risk and capital, which grants them a greater say in the operational and strategic direction of the startup. By establishing governance rights, the lead investor can influence important decisions that affect the future of the company. This role also helps attract other investors, who may feel more secure joining a deal led by a credible and engaged lead investor.

The other options represent specific functions that do not encapsulate the full scope of the lead investor's responsibilities. While providing technical assistance and acting as a financial advisor can be aspects of an investor's role, they do not accurately describe the primary function of a lead investor in terms of governance and investment terms. Managing the entire financial audit is typically a task reserved for accounting firms or internal finance teams, and not a role of the lead investor. Thus, option B accurately captures the essence of a lead investor's involvement in a startup's funding process.