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Ask HN: Has anyone taken money from family and had it totally backfire?
We seem to always hear about success stories, especially where financing is concerned. I especially wonder about taking money from family and friends, a typical way to jumpstart a company. I know it's a sensitive subject, but I'd love to hear about the other side and what to watch out for.
- noonespecial 15y agoWhen you take money from family, you have to feircly manage expectations. Your family may not quite grok what "investing in Junior's company" means. The most common mismanaged expectation is that it's a kind of loan and they expect to be paid back in relatively short order. Even with family, put it in writing. And always be willing to sacrifice nearly everything to just "pay it back" if you want to prevent a potential permanent family schism.
- diolpah 15y agoNo, but I have lended money to friends and in so doing destroyed said friendships. I refuse to lend money to any entity but my own business as a result. Human beings are fundamentally untrustworthy in the absence of explicit contracts, when it involves money.