I would third what you have heard here. A person that never served time for a felony that was not financially focused (e.g. wasn't a crime of dishonesty) would

I would third what you have heard here. A person that never served time for a felony that was not financially focused (e.g. wasn't a crime of dishonesty) would not be excluded from participating in a round of friends and family. Especially with no voting or board seat. If you are exceptionally concerned have the individual invest via a LLC or separate company, but I doubt any future investors will care either way as they will only be focused on your ability to deliver and as long as that isn't compromised you are good. There are some restrictions on a felony conviction in the SEC rules but I do not believe you would trigger them by taking funds from the person. IANAL but I believe they only become a factor if the person has a material interest or has a voting/board position in the company.