About two years ago we raised what I thought was a fairly impressive friends and family round. In addition to myself and my cofounders own capital, we have used this to generate strong user growth and small but substantive recurring revenue increases. Next week, I’m going to speak with some investors about raising a small A round. Should I speak proudly of our friends and family round? Or do investors assume anyone can raise money from their friends and family?
What they care about is what you accomplished with that money versus your goals!
They like it because if you cannot convince F & F to invest, you cannot convince them. It also is psychological. If you are committed to not losing your F & F money, you will take better care of the VC.
Many investors expect startups to raise money from family and friends as it's testament to the belief the founders have in the idea. If you raised an exceptionally large round, I would share it as it demonstrates your commitment and the commitment of your investors.