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The "family round" and "angel round" are early-stage seed financing tools for startup companies. The only difference is in the type of investor.
An angel investor is typically one person or a group of wealthy people who want to invest in the early stages of startups. They are usually very knowledgeable about this type of financing and risk-averse in terms of how much money they can lose.
On the other hand, family and friends usually can offer smaller investments and might not know this type of investing.
In the early stage of the company, placing realistic valuation can be pretty tricky. There usually isn't any revenue to report; thus, it's difficult to see what several years in the future will look like.
However, if a family member or a friend wants to see a valuation before they invest, some agencies provide the service of pre-seed valuation.
That entirely depends on the situation. Usually, these agreements don't require legal advice, especially if the investment amount isn't too significant.
But if a friend or a family member decides to invest in your startup generously, they might require legal services to create the SAFE.
Asking money from friends and family for your startup idea can be tricky and awkward. First, you need to build a strong business plan and know precisely how much money you need.
Then, it's essential to ease people into the idea through relationship building and making a solid pitch for your business idea. Finally, don't forget to keep excellent records of all financial agreements to make future investments much more manageable.
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In theory, they can, but that's not considered a fair practice. Not only that, depending on the terms of the agreement, it might be something quite challenging to do.
Every SAFE is different, so it needs to be assessed case by case. Typically, if SAFEs are amended, it's for the investor's benefit and not the other way around.