For family and friends funding — no one is getting paid back.
Today, we’ll talk about raising funding from family and friends.
Many startups launch their business with family and friends funding.
Some entrepreneurs are often reluctant to take money from their family because — well Thanksgiving turkey tastes different if things don’t work out.
On the other hand, investors view funding from family and friends as an indicator of support. After all, if your family and friends don’t believe in you why should they.
My recommendation is to go to family and friends and ask for no more than $5K per person and tell them it’s a donation. No one is getting paid back.
Most family and friends funding comes from those who want to support you and don’t look for a return.
This also alleviates the challenge of valuing the business at such an early stage.
If the business does succeed you may want to give back by offering $5K for one of their projects.
Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding.
Let’s go startup something today!
Copyright (c) 2020, Hall Martin and investorconnect.org. All rights reserved.
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.