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I'm usually one to loathe the use of this word, but is there anything more privileged than casually suggesting "raising investment money from friends and family

by sky_rw 4y ago

I'm usually one to loathe the use of this word, but is there anything more privileged than casually suggesting "raising investment money from friends and family". It's surely rarified air one breathes when you can casually raise a few hundred thousand from your immediate social circle.

borski 4y ago
You’d be surprised how many in your circle have more money than they let on, and even then, friends of friends, etc. Also, just because privilege exists doesn’t mean you shouldn’t use it if it does, for you; if the option is between the death of your startup or calling in some favors, the latter is the one you should take (assuming your bet in the startup is correct, but every founder tends to think it is, heh).
- shapefrog 4y ago
  > You’d be surprised how many in your circle have more money than they let on, and even then, friends of friends, etc. You’d be surprised how many in your circle have waaaaay less money than they let on, like orders of magnitude less.
  - Conan_Kudo 4y ago
    It is not wrong to consider it, but it's really important to make sure expectations are set well. "Friends and family" investment is not the same as professional investment. That means they'll actually care about the money and the business and you may burn relationships on a failed business you took money for. Professional investors don't really care, and if your business dies, they move on easily enough as long as you didn't cheat them.
  - borski 4y ago
    Sure. I grew up extremely poor. I get it. I just mean that even then, I knew some people who knew some people that had some money.
    - teaearlgraycold 4y ago
      If you work in the Bay Area you at least know a couple stupid rich people. I worked at a startup where one of the management team was working there mostly to have something to do. She liked the founders and the business. But she (9 figures) didn’t need more money.
  - csomar 4y ago
    I think both can be correct. Some people tend to exaggerate their wealth by buying stupid expensive shit (like clothes/car/etc..). Some people hide their riches by going cheap and not talking about their investments or second-houses. If you get to know the person more, you can actually know/guess. Usually, it's a redflag that deviates from what their standard is. (ie: A big purchase, having significant instruments that are only accessible to privileged people, or struggling to pay a small a bill when they have an expensive car)

by sky_rw 4y ago

borski 4y ago

You’d be surprised how many in your circle have more money than they let on, and even then, friends of friends, etc. Also, just because privilege exists doesn’t mean you shouldn’t use it if it does, for you; if the option is between the death of your startup or calling in some favors, the latter is the one you should take (assuming your bet in the startup is correct, but every founder tends to think it is, heh).

shapefrog 4y ago
> You’d be surprised how many in your circle have more money than they let on, and even then, friends of friends, etc. You’d be surprised how many in your circle have waaaaay less money than they let on, like orders of magnitude less.
- Conan_Kudo 4y ago
  It is not wrong to consider it, but it's really important to make sure expectations are set well. "Friends and family" investment is not the same as professional investment. That means they'll actually care about the money and the business and you may burn relationships on a failed business you took money for. Professional investors don't really care, and if your business dies, they move on easily enough as long as you didn't cheat them.
- borski 4y ago
  Sure. I grew up extremely poor. I get it. I just mean that even then, I knew some people who knew some people that had some money.
  - teaearlgraycold 4y ago
    If you work in the Bay Area you at least know a couple stupid rich people. I worked at a startup where one of the management team was working there mostly to have something to do. She liked the founders and the business. But she (9 figures) didn’t need more money.
- csomar 4y ago
  I think both can be correct. Some people tend to exaggerate their wealth by buying stupid expensive shit (like clothes/car/etc..). Some people hide their riches by going cheap and not talking about their investments or second-houses. If you get to know the person more, you can actually know/guess. Usually, it's a redflag that deviates from what their standard is. (ie: A big purchase, having significant instruments that are only accessible to privileged people, or struggling to pay a small a bill when they have an expensive car)