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Venture Capital vs. Friends & Family Financing

Mixing business with family and friends should always be approached with care, but friends and family money can often be the cheapest and most patient money available since they are primarily investing to see you succeed. They are less interested generally in a financial return.

Friends and family investment may also be a good way to validate that your idea is somewhat sound because if your own friends and family are unwilling to invest, that may be a good indication that finding other investors may be difficult.