When New York-based entrepreneur Matthew Hogan quit his steady job in finance to work on a startup idea, he told his two closest friends during a road trip to Atlantic City. A few months later, they each wrote Hogan a $25,000 check.
Many tech entrepreneurs take investment from friends and family to test the viability of an idea. They raise just enough to fund a developer’s salary, office space, monthly rent, and a steady supply of ramen noodle soup.
It’s a time-honored startup strategy, but it’s a risky one. Hogan could make his friends rich, if his startup takes off. But if it craters, that lost $50,000 could haunt their friendship.
To read the full, original article click on this link: How to raise startup funding from friends and family | VentureBeat
