While it's not illegal to take "friends & family" investment, it adds a lot of legal headache and it's something VCs really don't want to deal with. Startup Law

While it's not illegal to take "friends & family" investment, it adds a lot of legal headache and it's something VCs really don't want to deal with. Startup Lawyer puts it better than I can: http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors http://thestartuplawyer.com/convertible-notes/life-is-too-sh...