I think it's better to structure it as an equity investment, and to really make it clear to friends & family that they are buying a lottery ticket that will probably lose.
Also, make sure the investors are people where you wouldn't be uncomfortable if they saw your company's annual shareholder reports every year for the next 20 years - both in the failure and mad success scenarios. An ex-spouse or potential ex-spouse perhaps not a good choice.
Also, make sure the investors are people where you wouldn't be uncomfortable if they saw your company's annual shareholder reports every year for the next 20 years - both in the failure and mad success scenarios. An ex-spouse or potential ex-spouse perhaps not a good choice.