Hacker News Reader

Close your eyes and imagine that you took a sum of money from friends and family, gave it your best shot and burnt through it. Would you be able to face them positively after? Would it undermine your relationship with them in any way? If it would, then it's not worth it. If your idea is any good, there will be a lot of opportunity for investments in this market.

View on HN

I did tell both when they asked that if they owned 10% of nothing when it was all said and done they would get exactly that amount ... Nothing, neither seemed to see that as an issue or a possibility, I guess maybe that was part of the problem. I want them to realize it could really happen!

If you can't make your friends and family realize there's a good chance they'll lose all their money by investing in you, and the amount of money they'd be investing is a nontrivial fraction of their assets, you can't ethically take their money.

You have an obligation to look out for the best interests of your friends and family -- i.e., to take care of them -- whereas your only obligation to professional investors is to honor your contracts.

Reply on news.ycombinator.com