Friends, Family & Fools Funding
Raise your first round from people who believe in you — structure it properly with legal agreements, clear terms and compliant documentation to protect both sides.
Structure your first funding round properly
Tell us how much you want to raise and from whom. We structure the deal, draft agreements and handle compliance.
Talk to a CS →What we handle for FFF rounds
Valuation Guidance
Pre-money valuation guidance based on comparable startups — sets clear expectations for both sides.
Term Sheet Drafting
Simple term sheet drafted covering investment amount, equity %, rights and exit provisions.
Shareholders Agreement
Legally binding SHA drafted protecting both the founder and the investor relationship.
Compliant Documentation
Share allotment, board resolution, Form PAS-3 and ROC filings handled for Pvt Ltd entities.
Convertible Note Option
If equity is premature, a convertible note structure with clear conversion triggers drafted.
Relationship Safeguards
Clear terms prevent relationship damage — repayment conditions, equity rights and exit terms documented.
What to get right in a FFF round
Document Everything
Verbal promises with family destroy relationships. Every commitment must be in writing — no exceptions.
Equity vs Loan
Decide upfront — equity investment or a loan? Different legal documentation and tax implications apply.
Clear Repayment Terms
If it is a loan, specify the repayment schedule, interest rate and what happens if the startup fails.
Valuation Agreement
Agree on valuation before discussing equity percentage — avoids disputes when dilution happens later.
Private Limited Company
FFF equity rounds must be done through a Private Limited company — not proprietorship or partnership.
ROC Filing
Share allotment to FFF investors requires board resolution, Form PAS-3 and ROC filing within 30 days.
Money and relationships are a dangerous mix without documentation. A simple shareholders agreement and term sheet, done right, protects both the startup and the investor — and keeps family dinners comfortable.
Common mistakes in FFF funding rounds
Simple steps, no surprises
Deal structure decided
Equity or convertible note, valuation and percentage agreed with clear documentation.
Agreements drafted
Term sheet and shareholders agreement drafted and reviewed by all parties.
Board resolution passed
Board resolution approving allotment of shares passed and minutes maintained.
ROC filing done
Form PAS-3 and share certificate issued — ROC compliant within 30 days of allotment.
Other services you may need
Frequently asked questions
FFF stands for Friends, Family and Fools — the first people to invest in a startup, usually before any formal investors. They invest based on belief in the founder rather than a proven business model.
Either can work, but equity gives the investor upside and must be documented with a shareholders agreement and ROC filing. A loan is simpler but must have clear repayment terms. Convertible notes convert a loan into equity at the next funding round.
There is no fixed rule, but founders should be cautious about giving more than 10–15% in total to FFF investors. Leaving insufficient equity for future rounds deters angel and VC investors.
A shareholders agreement (SHA) is a legal contract between the company, its founders and investors that defines rights, obligations, transfer restrictions and exit provisions. It is essential even in small FFF rounds.
After allotting shares, the company must pass a board resolution, issue share certificates and file Form PAS-3 with the ROC within 30 days of allotment. Beyonte Compliance handles all of these.
Ready to raise your first round the right way?
We structure your FFF round, draft agreements and handle ROC compliance — protecting both founders and investors.