Don't. It's a bad idea. You can no longer discuss progress and failures with them because they're personally invested. Against my better judgment I took $ from family. When I was doing poorly I was pressured to shut it down. When I started doing well I was pressured to pay out when I really needed to invest in the company. And all the while I hear the "you couldn't have done it without me" speeches.
They'll start watching every purchase you make and wonder "is that my money he's spending?" I can't talk about buying a new phone, a new laptop, or anything else. My own mother heckles me about "paying my employees too much". Every time they see a photo of you on facebook at a music festival they're going to think, "so thats what he's doing with my money." They'll want status updates every time you see them when what you need is a few hours away from work.
If you can bootstrap--do that. Only raise money to expand when you're already doing well but could be doing better.
They'll start watching every purchase you make and wonder "is that my money he's spending?" I can't talk about buying a new phone, a new laptop, or anything else. My own mother heckles me about "paying my employees too much". Every time they see a photo of you on facebook at a music festival they're going to think, "so thats what he's doing with my money." They'll want status updates every time you see them when what you need is a few hours away from work.
If you can bootstrap--do that. Only raise money to expand when you're already doing well but could be doing better.