This is a case of fraud and theft. I don't get why your takeaway is that it's somehow unsafe, as a founder, to take legitimate investments from friends. Were yo

This is a case of fraud and theft. I don't get why your takeaway is that it's somehow unsafe, as a founder, to take legitimate investments from friends. Were you planning on ignoring your company bylaws, pumping money into a secret account, not papering the investments, and hiring an R&B star to serenade you? Because otherwise I think you'd be OK. A good reason not to take money is you'll probably fail, lose your friends' money, weaken friendships, and feel like a douche. I don't think there is much legal risk if you aren't totally nutso, and the board approved the investments.