friends and family round

Beginner πŸš€ Startup / VC

Definition

The first fundraising round from people who love you enough to give you money despite zero evidence your idea will work. The most expensive way to ruin Thanksgiving dinner conversations.

Example Usage

We raised $150K in a friends and family round, and now I avoid my uncle at holidays because his $10K is worth approximately nothing.

Origin

Traditional startup financing terminology from pre-VC era

Fun Fact

Friends and family rounds account for an estimated $60 billion annually in the US alone, roughly equal to the entire venture capital industry's early-stage investments.

Source: Early-stage startup fundraising terminology

Related Terms

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See “friends and family round” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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