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Tuesday, April 18, 2017

What are the standard terms or agreements for raising money from friends and family?

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I am planning to launch my web application and attempt to raise some initial funding from friends and family, but I was wondering if there is any standard protocol around the terms or agreement for this type of proposal. It seems like many startups begin with this type of funding to get their product off the ground, but I see very few examples of what the terms consisted of. From the few discussions I have seen, it doesn’t appear that a great deal of equity is ever involved. Do they involve common stock? Simply a loan with a set interest rate? Can anyone share the terms they used when structuring this type of funding?

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April 18, 2017 at 10:22PM

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from /u/techbuzzwords

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