I would say that most venture backed startups require additional capital after the seed or Series A round. That isn’t a bad thing and typically part of the plan. And everyone knows that going in from the founders, to the early employees as well as the earliest investors.
At some point the company then needs to raise additional capital. (I’ve already written about how to focus your efforts with that early capital so i wont discuss that topic in this post.)
It is very common to seek out a new lead investor for the new round of capital. Why?