Many Out-Of-Home (OOH) companies get their start with help from friends and family. In fact, about 1 in 4 Billboard Insider readers have raised funds this way, including companies like Huntington Outdoor and Meadow Outdoor.
Pros:
- Built-in trust: Friends and family know you, so less due diligence is needed.
- Industry familiarity: Some may already understand the OOH business, making conversations easier.
- Simpler setup: Documentation is often lighter than with formal investors.
Cons:
- Relationship risk: If things don’t go as planned, it can strain personal ties.
- Family dynamics: Personal issues can spill into business decisions.
- Limited capital: Friends and family often invest less than professional funds.
- Regulatory rules: Non-accredited investors may trigger state securities law issues.
Funding through friends and family can be a great starting point. Just make sure to set clear expectations, document agreements, and protect your relationships along the way.