Funding is essential to any early-stage startup. Most entrepreneurs think of funding in terms of professional investors, such as angel investors and venture capitalists, but the most common way to start funding your business is actually by raising money from people in your network – your family and friends. 

There are two important aspects to raising money from friends and family – how you go about approaching people for their investments and also staying compliant with the numerous laws in place to protect investors. This article gives an overview of both concepts.