Comments on: Friends and Family – Are they Startup’s Best Friends?

By: Basil Peters

Basil Peters — Tue, 01 Sep 2009 16:25:12 +0000

Ashish – excellent post. Friends and Family financings are always the easiest to complete. The only problem is that most people who invest in Friends and Family financings probably shouldn’t. As an active angel investor, I often see situations where overly optimistic entrepreneurs have inadvertently taken advantage of their friends and family. I’ve posted some suggestions on how to avoid the common pitfalls here: http://www.angelblog.net/Startup_Funding_the_Friends_and_Family_Round.html

By: Lalit

Lalit — Tue, 01 Sep 2009 07:57:55 +0000

At an idea stage, F&F&F are the best people for your business.They encourage you to try this new things(which you yourself may have doubts about at that stage).
At a very very early stage there could be a state like too much analysis and blog reading( I have met thousands or psuedopreneurs who essentially sit on fences just ‘talking’ and ‘evaluating’ opportunities working in an MNC rather than ‘doing’ anything.) F&F are the best people to encourage you to take the plunge and explore the unexplored .. so do not underestimate them !!

But I agree that taking them as your end customers .. well that could be disastrous…

By: Ashish

Ashish — Tue, 01 Sep 2009 07:50:24 +0000

Great ‘tea’ example.
Just updated the post with details on F&& for the right purpose
–
So use your F&F for the right purpose – be it for raising angel fund or as evangelists (who can really really evangelize your service), but do not (by default) take them as your best friend when it comes to building your business.

By: Kasi

Kasi — Tue, 01 Sep 2009 07:36:43 +0000

Bulls-eye Ashish.

Second famous one is “if i sell 1-tea to every Chinese and Indian and i sell 3-billion tea everyday story”.

I can’t understand your statement on “Use your F&F for the right purpose”… you mean getting the money?