

The Pros and Cons of Raising Money from Friends and Family - earbitscom
http://blog.earbits.com/online_radio/the-pros-and-cons-of-raising-money-from-friends-and-family/

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"We raised from nearly every friend and family member we could get excited
about our idea. The joke is, if Earbits fails we won’t have a friend or family
member left."

Something is very wrong here. If people invest in anything they must take on
the associated risk.

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earbitscom
That's why it's a joke.

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I think we agree, but to elaborate; The point I'm making is that this
shouldn't be the case (and needn't be a joke). I've raised funds from
"friendly" sources a few times. In each case it's been made clear that the
investor should be doing so doing so to make money. If they lose their money
it's because they invested poorly, and it was their decision. They are asked
to weigh up their other investment options such as the stockmarket and
property and make a call.

If friends and family want to 'help out' then investing is probably not the
vehicle. They should lend money. There's will be less upside for them but the
debt will stand if the venture fails.

