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By: Anonymous https://startupsanonymous.com/story/raising-money-from-the-rich-uncle/#comments/4075 Mon, 16 Jun 2014 12:27:47 +0000 https://startupsanonymous.com/?post_type=stories&p=204#comment-4075 Here is the thing- a start up is a high risk investment and doing a “friends and family” round is pretty dangerous to relationships considering that most start ups fail.

If your uncle is being cold, respond with a solid one pager or deck and then leave it at that. He’s probably willing to invest if it makes sense to him on the bottom line, but not to help you out to make your dreams come true.

You don’t want to be the guy that takes family money and loses it.

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By: Anonymous https://startupsanonymous.com/story/raising-money-from-the-rich-uncle/#comments/1002 Wed, 12 Mar 2014 19:31:48 +0000 https://startupsanonymous.com/?post_type=stories&p=204#comment-1002 Sounds like s very direct request. I might imagine he perceives you as “beating around the bush” with your long winded “look what we can do pitch”.

Since he’s family I’m also assuming you feel a greater sense of responsibility about fucking up if he lends you money. This therefore pushes you to be extra long winded in your novel of a disclosure about every detail of the business which I’m sure he probably is not too interested in.

If he’s open to lending to you then there is an inherent form of trust already there. Just move past “your feelings ” and be direct with him as he is with you.

He probably just wants to understand the numbers, see what it generates and decide if it’s a risk worth taking. (I’ve always heard you don’t lend money you’re not willing to lose).

Hope you don’t take all this the wrong way, not trying to be a jerk, I’m just calling it like I see it.

Also congrats on the baby, we just had one 1yr ago and I run my own company as well and it’s sometimes the only part of my day that’s enjoyable!

Take care and good luck.

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By: Anonymous https://startupsanonymous.com/story/raising-money-from-the-rich-uncle/#comments/632 Mon, 24 Feb 2014 18:13:12 +0000 https://startupsanonymous.com/?post_type=stories&p=204#comment-632 In the past, I’ve raised money from friends and family for startups, and I’m currently in the “rich uncle” category. My advice would be to do exactly what your uncle asks, plain and simple. You’re going to need to raise money from more people than just him. He wants to see a professional pitch that will work on other people. He may in fact have other people in mind, if the pitch is any good.

Even when you’re dealing with close family, there are good reasons to handle f&f investment in a thoroughly professional way.

I don’t want to be a troll here, but from your post, it sounds like you are not behaving maturely here. As an uncle, I would be concerned to give money to someone who thought like this, no matter what the idea was.

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By: Anonymous https://startupsanonymous.com/story/raising-money-from-the-rich-uncle/#comments/619 Sun, 23 Feb 2014 15:20:19 +0000 https://startupsanonymous.com/?post_type=stories&p=204#comment-619 If you feel like your uncle is giving you the cold shoulder, try reversing the tables and looking at it from his perspective. I’m confident he wants you to succeed and probably wants to invest.

If you were buying hard assets (like an office building) or starting to manufacture a product (like a bakery, soft drink etc) with a known market your uncle might have an easier time relating to your proposal.

If, however, you’re relying on him to understand a business plan that involves a new internet application that will revolutionize the market, your uncle’s reluctance might stem from his previous investment losses with internet-based investments or lack of education and experience with your potential customer base.

So, where do you go from here?

Here are a few ideas that will allow you to vet your idea with objective, third party professional investors. If those sharks start circling the water, I think your uncle won’t hesitate to jump in and invest:

1. Have you tried raising capital using crowd funding? I know there are various crowd funding sites that cater to specific sectors. Examples include “Our Crowd” and “Realty Mogul”.

2. Have you pitched or shown your web site to an angel vc firm? If so, did you received their feedback?

3. Have you tried to pitch your business plan to non-relatives who you trust (your family lawyer, accountant, business professor? They will give you the most objective answer. and will also critique your presentation with your success in mind.

Take a look at this link https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CCYQFjAA&url=http%3A%2F%2Fwww.ted.com%2Ftalks%2Fnancy_duarte_the_secret_structure_of_great_talks.html&ei=Bw0KU9ygNsqEoQT9joGgAg&usg=AFQjCNEryktmZp5CKqLPxqv9ykuSMtuewA&bvm=bv.61725948,d.cGU

Personally, based on what I’ve read about your current home life, I suggest you wait a few months so your home life gets into a more predictable routine, use the current period of turmoil (and lack of sleep) trying to reach out to others for feedback and critique and continue to refine your presentation and idea. This brief break may allow you to see things from a different perspective and when things calm down you will be ready to blast off.

Don’t give up. Just reconsider your uncle’s motives and try to understand things from his perspective and move on. Use this brief hiatus to create the necessary “work-life balance” you’re gong to need when you reach the launchpad.

Good luck.

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