Friends and Family and Other Seed Funding

A recording of this webinar is available for ENET members only at https://bostonenet.org/past-webinar-recordings. Learn how to become a member here!

ENET is pleased to present this meeting and online webinar! Attendees will have the option to join us in-person at the Cambridge Innovation Center (CIC) in Kendall Square, Cambridge, MA or online via Zoom. Use the link below to pre-register!

You want to start a company, but even if you forego your own salary, other startup expenses add up.  Beyond your own savings, where do you go to get your first funding?

Some studies show that each year between 35-40% of startup ventures receive capital from friends and family. This can include not only your relatives but also neighbors, colleagues from work, social and sports clubs, teachers and classmates, from grade school right through to grad school, and others you’ve met on your life’s journey. Some also call this varied investor group “friends, family, and fools” – because being the first in investors can be so risky to one’s pocket book.

The October 18 ENET meeting will explore this important and often critical source of financing for startup company – do’s and don’ts, tips and lessons learned, how best to prepare if you are now or will soon embark on your own effort to raise friends and family financing.

That night, we will begin with the “ask”. How to approach friends and family on what can be a touchy subject  – warming them up, feeling out financial ability and interest in possible investment.  We move to using of the simple pitch deck, setting a clear value proposition and rehearsing your elevator pitch.  Part of this will include determining your use of proceeds and the amount needed to take you to a series A or other funding. Then you will need to translate that into how much to seek per investor and setting a stage where you can make a presentation and finally creating a cap table for your company.

Moving beyond that initial pitch to investors, you will need to know and our speakers will discuss your plan for what forms investment will take – whether equity, the form of equity, loans, convertible loans and how convertibility would work or gifts and if gifts what might be offered to those who might make a gift.  Then you will need to plan out the documentation for investment which would take this includes setting out what you want to do, how you plan to do it and how you will use the money.  Documentation would also include protecting yourself again future claims of misrepresentation by setting out challenges you face, risks of loss for investors and competition. As part of your planning, you will want to be sure to nothing that will harm your chances for later angel or VC financing… and we will cover that too.

Other speakers will address special issues involving biotech and life science companies and still other special issues involving intellectual property – both key protections you want to put into place for IP but also opportunities your IP can offer you.

Among our four speakers are active angel investors and serial entrepreneurs including experiences with both tech and life science startup companies they founded.  The presentations will then be followed with a fireside chat, with audience and moderator questions for each of the speakers on the panel.  There will be also be a half hour of post-meeting networking available to the attendees giving you the chance to meet the speakers and moderator.

More information

In-person Participation (check-in begins at 6:00 PM):
LOCATION: CIC, One Broadway, Cambridge, MA 01803.
TRANSPORTATION: Across the street from Kendall Square T station on the Red Line.
PARKING:  Low flat rate parking available after 5pm.
REFRESHMENTS: Pizza will be served.

Online Participation
Zoom links will be sent to all registrants after registration.

COST AND RESERVATIONS: This event is free for ENET members, $5 for CIC members and $10 for non-members. ENET members will also have the opportunity to view a recording of this webinar if you are unable to attend or wish to view it again. Click here to learn how to become a member.

To expedite sign-in for the event, we ask that everyone — members as well as non-members — pre-register. Pre-registration is available until midnight the day before the meeting. If you cannot pre-register, you are welcome to register in person at the door while seats are available.

Venue Sponsor

CIC believes in the entrepreneur. We recognize that invention propels innovation, density spurs collaboration, and a shared purpose drives a thriving community. CIC provides a home from which to work, allowing innovators to easily access resources and create substantive, positive global impact. Request to chat with a workspace expert about CIC’s flexible workspace offering, or try out a complimentary, one-time day of coworking.