Fundraising · Investors

Do Series A investors care about friends and family rounds?

Neha Jain I have done MTech and currently working in Pune

April 5th, 2017

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?

Tom DiClemente Management Consulting | Interim CEO/COO | Coach

April 5th, 2017

What they care about is what you accomplished with that money versus your goals!

Dane Madsen Organizational and Operational Strategy Consultant

April 5th, 2017

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.

Anonymous

April 5th, 2017

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.