Beyond the founder’s personal savings and credit cards, money invested by family and friends is a fairly common approach to capitalizing a small business. But treating friends and family as “friends and family” can be a mistake, and there are legal implications that you ignore at your peril. Find out the right way to conduct a friends and family capital raise and avoid the mistakes that can jeopardize future rounds of fundraising, risk litigation, or ruin personal relationships.
You’ll...