Though there may be an emotional toll from asking for venture capital from friends and family, adhering to certain guidelines can alleviate some of the pressure, according to Forbes’ Dan Reich.
One of those guidelines includes providing favorable terms. You can make your loved one a large equity holder or give them favorable interest rates on a loan they give you.
According to Reich, you must also be brutally honest and transparent about the state of your company. Don’t over-represent the company’s earning potential or likelihood of success.
Read more at Forbes.