Raising a friends And family round?
patio11: The stock piece of advice we gave at the technology incubator I used to work at is to consider giving them debt rather than equity.  There is a minimum of legal fuss associated with this -- for many friends & family, you can literally proceed on a handshake ("$10,000 loan, 5% APR, 3 year term work for you?  Thanks Uncle Jim.  My bookkeeper will cut the checks.") and if you want to contractualize it you can have loan docs drawn up very, very reasonably.Personally, if I were to do it, I'd have somebody like Prosper (but not Prosper) involved in the middle to handle the loan payments/collection/etc.  It costs a little extra money but saves on you actually having to calculate loan payments and may well prevent you and Uncle Jim from ever having to have an unpleasant discussion about the tardiness of your check.Particularly for a concern with actual revenue, loans are a great alternative to equity: they won't entangle any of your activities going forward, there is a built-in way to sever the relationship with both parties leaving on amicable terms with each other (repayment), and they're very, very easy to understand for people who are not in your business, in a way that an equity position in your company is not.