

Ask HN: Has anyone taken money from family and had it totally backfire? - eegilbert

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.
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noonespecial
When 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.

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diolpah
No, 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.

