Seeking funding from family and (often, soon to be former) friends is often a key part of a startup's bootstrapping strategy. This article stresses caution in this regard, stating:
"Money from family and friends can be a blessing. They're an easy and trusted source of investment for your burgeoning small business. But it can also be a curse, given the additional stress that the emotional and relational ties put on the transaction. Having a serious plan ahead of time can save you much acrimony later, whether the business is a success or bust. "
From Small Business Brief