Short for "Friends, Family, and Fools", the FFF round is when a startup fundraises through their closest network (i.e. friends and family).
Advantages of the FFF Round
Engaging a close network and early investors is often the most-available option for early-stage founders, making the FFF round a common method of fundraising. Here are a few advantages of the Friends, Family, and Fools round of startup fundraising:
- Universal Support: In the FFF round, funds are given out of support and interest from the emotional perspective, and regardless of the industry and business plan.
- Less Pressure: Given that this is the founders' closest family and friends, there is less pressure to impress with pitch decks and more room to learn on the fly. In fact, FFF investors often do not expect to see returns on their investments.
Disadvantages of the FFF Round
The FFF Round isn't for everyone. Here are some disadvantages of the Friends, Family, and Fools round.
- Resource Limitations: Friends and family often lack the resources to give enough to make a longterm impact.
- Blurred Lines: Engaging with personal relationships like friends and family as investors can cause blurred lines between your work and personal life.