BizSugar.com › Raising Capital › Fueling Your Startup with Friends and Family Funds

Early in a startup's life, it is difficult to raise funds from professional investors. There's just not enough proof that your idea will gain traction and provide the returns experienced investors need. Banks won't loan money unless the business has collateral to protect their funds.

As a result, entrepreneurs turn to friends and family members for loans and small investments to get them through these early stages. This is a viable, but risky strategy. I've put together 7 common pitfalls to avoid with friends and family funds.