How to close a Friends and Family investment, Step by Step. Friends and Family are often the source of a startup's first investment funding. This video walks you though a typical Friends and Family process:

1. Gain credibility by testing your assumptions with customer interviews (customer discovery)
2. Create a legal entity
3. Build your initial team
4. Select a fundable milestone
5 Assess whether your Friends and Family network can fund the milestone
6. Select an SEC exemption - typically Reg. D, 506(b)
7. Select a funding mechanism - probably a convertible note or a Simple Agreement for Future Equity (SAFE)
8. Decide on the terms for the Note or SAFE, including discount, valuation cap, and (for a NOTE) interest rate and maturity date.
9. Draft the legal documents
10. Develop the 'story" for Friends and Family
11. Make the "Ask"
12. The "Ask" is actually a trial close
13. Close - sign documents - deposit checks
(It's not over until the checks all clear the bank)
14. Complete your Federal (SEC) and/or state filings
15. Reach that fundable milestone!