If you can't make your friends and family realize there's a good chance they'll lose all their money by investing in you, and the amount of money they'd be inve

If you can't make your friends and family realize there's a good chance they'll lose all their money by investing in you, and the amount of money they'd be investing is a nontrivial fraction of their assets, you can't ethically take their money. You have an obligation to look out for the best interests of your friends and family -- i.e., to take care of them -- whereas your only obligation to professional investors is to honor your contracts.