Startup Lingo: 3Fs in Startup Funding

Published: June 28, 2022

The 3Fs in Startup Funding

BLOG – Building an idea to eventually become the foundation of a Startup takes a lot of hard work and building connections. One may have promising plans, but they will need much support in knowledge, finance, and networking to be able to execute it.

One known form of support in very early-stage startups are the “3Fs” known as Family, Friends, and Fools. This group of people are likely to invest on possible multi-million dollar ideas due to love (Family), relationships and shared interests (Friends), and passion and usually, lack of technical knowledge (Fools). 

Financial support from the “3Fs” are normally smaller pledges that help fund very early-stage startups in studying their potential place in the market and doing preliminary research on their possible offering. Ultimately, it takes a village to build a Startup; and it is good for aspiring entrepreneurs to get the help that they need and use this to slowly expand their network.