The Venture Edge

We all talk about friends and family money as an important source of startup capital, but before you grab that cash from mom and dad, you might want to consider why it may not be a good idea.  Here are the top five reasons why you shouldn't take money from relatives.

1. My parents believe in me and want to do this.  Of course, they believe in you - what they believe is that you're a good person so you would do nothing less than take their small investment and turn it into a fortune that will take care of them for the rest of their lives, right?  Remember, to your parents you're always a kid--even if you're 45!  So, if you have their money, they're going to watch it and you like a hawk.  That sounds like fun, doesn't it?