WorkflowFor EntrepreneursFundraising & Investment

Raise a Friends & Family Round.

When considering your very first fundraise from personal network — the highest-trust, highest-risk capital.

ChatGPT · Claude · Gemini·Advanced·~335 tokens
Curated by the AIPP team
Last updated 14 May 2026 · v3
raise-a-friends-family-round.md · 335 words
You are a senior {{role}} brought in to help {{target_user}} complete a Raise a Friends & Family Round.

# Context
Original working context:
- Step 1: I want to raise ₹{{amount}} from friends and family as my first capital before going to angels. Is this a good idea? What are the risks and how do I protect the relationship if the startup fails?
- Step 2: Structure the round: What instrument should I use (convertible note, SAFE, equity, or loan)? What terms are fair for this stage? What's the right valuation cap?
- Step 3: Prepare the documentation: What legal documents do I need to protect both parties? Write a simple, one-page term summary for a non-investor family member.
- Step 4: Write the conversation script: How do I have the 'I want to raise money from you' conversation with a family member or close friend in a way that is honest about the risk?
- Step 5: Design the investor update process for F&F investors: How do I keep them informed without making them anxious? Write the first update email template.

# Goal
Produce the exact deliverable requested for this use-case. Make the output practical, specific, and ready to use.

# Constraints
- Use the user's variables exactly where relevant.
- Avoid generic filler and vague advice.
- Be specific to the stated audience, platform, market, role, industry, or situation.
- Ask only essential clarifying questions if required; otherwise make reasonable assumptions and continue.

# Output
Return the final deliverable in a clean, skimmable format with clear headings, bullets, tables, scripts, templates, or steps as appropriate.

The variables to fill in

PlaceholderWhat to put thereExample
{{amount}}Amount$5,000
{{role}}Rolefreelance client onboarding strategist
{{target_user}}Target usera freelance consultant

How to customize this prompt

  1. Replace each {{double-curly}} with your real context.
  2. Adjust the constraints section to match your tone — formal, casual, blunt.
  3. If the engagement is recurring, change the duration line to mention milestones rather than days.
  4. Run it in your tool of choice. The output should be ready to paste with at most one small edit.

When to use

When considering your very first fundraise from personal network — the highest-trust, highest-risk capital.

PRO TIP

Friends and family rounds are the most emotionally expensive capital you'll ever raise. If the startup fails, the money is gone — but the relationship doesn't have to be, if you were completely honest about the risk from the start. Exercise 2 — The Fundraising Readiness Audit Scenario: Before you approach a single investor, run this internal audit. Most founders waste months pitching before they're ready. This exercise tells you exactly where you stand. Your tasks: Use Prompt #41 to write the narrative for your 10-slide pitch deck. Score each slide 1–10 for clarity and investor impact. Use Prompt #44 to build your financial model. Can you defend every assumption in 60 seconds or less? Use Prompt #49 to answer the 20 hardest investor questions. Record yourself on video. Watch it back. How many answers were genuinely compelling? Use Prompt #45 to run your own internal due diligence. List every red flag you find — before investors find them. Use Prompt #53 to build your data room. Is it complete? Is it organized? Would a first-time viewer understand the business from the documents alone? Score yourself: if you scored 8+ on the pitch, can defend the model, answered all 20 questions confidently, have no unfixed red flags, and the data room is ready — you are fundraising-ready. If not, fix the gaps first. 4 Go-to-Market & Sales 20 prompts · The best product doesn't win. The best-distributed product does. · 8 Structured | 6 Agentic | 6 Multi-Step What these prompts deliver: Building a great product is table stakes. Getting it into the hands of customers who need it — that's where companies are won or lost. This category covers everything from your GTM strategy to sales playbooks, cold outreach, customer success, and referral programs. These prompts turn your go-to-market from a hope into a system.

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