Anchor Investor

Definition:

A qualified and prominent investor who is one of the first investors in an offering and provides subsequent investors a degree of confidence. An Anchor Investor’s investment stake is sizable. Anchor Investors are most relevant as an offshore concept.

Pre-IPO Private Placements have become increasingly common and replaced Anchor Investors. See also Cornerstone Investor. Unlike Cornerstone Investors, Anchor Investors are not subject to a Lockup.

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