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I have a friend who raised a small amount from an unaccredited investor. The investor was a trusted family friend. The startup went nowhere, and the investor lo
by bdclimber14 16y ago
I have a friend who raised a small amount from an unaccredited investor. The investor was a trusted family friend. The startup went nowhere, and the investor lost all her money. She was irate and demanded all her money back. No matter how much explanation you give of the risk, some unaccredited investors will still not understand.
- kovar 16y agoI refuse to a) accept money from family or friends and b) insist on extensive documentation and contracts. 'a' reduces the emotional complexities and 'b' gives me a leg to stand on should there be differences of opinion.
- bdclimber14 16y agoB should always be done. Close family can be a good way to raise money. Generally, they see it as a gift with a potential upside. It's the friends of friends or friends of family where it gets really sticky.