Ask HN: To Those Who Have Raised Friends/Family Round
I understand the importance of managing expectations, the risk of ruining relationships. Any other advice/experience you could share would be appreciated.
About my startup:
Hardware product that automates/makes possible a common task that can and is frequently done by hand but can not be done consistently well by human hands, hence my machine. The output of my machine is far superior to what can be done manually.
I have buyers lined up, and a working prototype, demand is huge and I have filed a provisional patent. I need the money to continue operations through a crowd funding round and for legal counsel/liability.
I'm looking to raise under Rule 504, amounts of 5-10k from several friends/family that have offered, well off/sophisticated but probably not accredited. Looking to raise 60k.
Hacker News changed my life, I learned enough reading the articles/comments here to start a viable consulting business. I got my best clients from the monthly seeking freelancer posts, and I thank the community in advance for the good advice I am sure I will receive from this post.
Update:
Any thoughts on strategy of raising small F&F round and going for crowd funding round vs trying for a proper San Francisco angel/VC seed round?
The product is truly disruptive and in a hot industry. People get really excited about it. It's sexy. The niche my product is in currently is in the same place as microcomputers were before the Apple I, with lots of hobbyists making their own setups.
I have a friend who built and sold a solar company with contacts in San Francisco he could introduce me to.
The product is disruptive and the market is huge/sexy. I have no doubt I could raise from proper angels, however my bias it to maintain as much ownership/control as possible.
Thoughts?
Sorry for being secretive, but I think its best to stay in stealth mode for now.