The friends and family round of financing is a great source of financing to bootstrap a business and get it off the ground. If it is done correctly, it should be structured as a private placement to comply with securities laws. Most people associate private placements with offerings made only to accredited investors. However, it is possible to conduct a private placement that includes non-accredited investors. While it is doable, there are pitfalls.
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Can a friends and family round include non-accredited investors? Should it?