A friends-and-family round is early, informal money from the founder’s personal network. Amounts are small and terms are simple. It exists on trust in the person, before there is much to show.
Where in the journey
Earliest — idea or first prototype.
What the money is for
Cover initial costs to get something built and test the idea.
Common investors
Personal contacts, not professional investors.
Watch out for
Mixing money with relationships; unsophisticated terms can complicate later rounds.