MJ Gottlieb, Author, How to Ruin a Business Without Really Trying

Most start-ups need to secure a small initial investment (seed capital) in order to have the resources in place to get their companies off the ground. Many get their seed capital in the form of ‘friends and family money’ which I think is always a very good idea for a few reasons. One, because seed money is normally too small to entice a more sophisticated investor to get involved, and secondly, you have a much better chance of securing an investment from people who are already routing for your success.