---
title: How To Ask Friends & Family For Funding (And Why You Shouldn't)
description: "Would-be entrepreneurs are skipping bank loans in favor of crowdfunding platforms like Kickstarter and GoFundMe to raise money — in fact, the average new business receives 40% of its startup funds from friends & family. Most experts advise against asking personal connections for money, and for good reason: in many cases, the risks far outweigh the benefits. This Business article explains why friends & family should be your last resort for startup funding."
image: https://www.barryinvestmentadvisors.com/hubfs/Ask%20For%20Funding.jpg
---

August 24, 2020

# How To Ask Friends & Family For Funding (And Why You Shouldn't)

Would-be entrepreneurs are skipping bank loans in favor of crowdfunding platforms like Kickstarter...

![Barry Investment Advisors](https://www.barryinvestmentadvisors.com/hubfs/Toolbox%20Images/BIA_Logo_Horizontal_RGB.png)

Posted by [Barry Investment Advisors](https://www.barryinvestmentadvisors.com/blog/author/barry-investment-advisors)

![](https://www.barryinvestmentadvisors.com/hubfs/Ask%20For%20Funding.jpg)

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Would-be entrepreneurs are skipping bank loans in favor of crowdfunding platforms like Kickstarter and GoFundMe to raise money — in fact, the average new business receives 40% of its startup funds from friends & family. Most experts advise against asking personal connections for money, and for good reason: in many cases, the risks far outweigh the benefits. This Business article explains why friends & family should be your last resort for startup funding.  

                                                       [![Click Here to Read](https://no-cache.hubspot.com/cta/default/424177/584eb931-b5b9-4257-887b-d44dee72d9d0.png)](https://cta-redirect.hubspot.com/cta/redirect/424177/584eb931-b5b9-4257-887b-d44dee72d9d0)

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