Early-Stage Financing: Friends, Family & Founders

Secure early money without creating legal messes.

Raising capital at the beginning is tricky. Whether you're accepting cash from your cousin, a silent investment from your best friend, or sweat equity from a co-founder, it’s easy to make well-intentioned but legally risky choices.

At tmalaw, we help beauty, cosmetics, and personal care brands raise early funds in a way that protects relationships, honors contributions, and reduces long-term liability.

Is This For You?

You might need support with early-stage funding if:

  • You accepted money from a loved one (but nothing’s in writing)

  • A co-founder is contributing time instead of cash

  • You’re prepping for your first formal raise and want to clean things up

  • You’re not sure how to distinguish a gift, a loan, or an investment

  • You’re building a cap table and realizing... things are messy

Brands often ask us:

“I promised equity—how do I make that legal?”
“They gave me $10K to help launch. Is that a loan? An investment?”
“Can I give them a percent of sales instead of ownership?”
“How do I keep control of my company if I raise money from friends?”
“What’s the legal risk if I don’t document this?”

This is your business. You deserve clean agreements that match your intent.

Real Industry Insight

CPG brands often rely on community capital to get off the ground. But vague deals and handshake agreements can create:

  • Ownership disputes down the line

  • Confusion over repayment, equity, or profit share

  • Exposure to securities violations (even if unintentional)

  • Delays or red flags during future due diligence with investors

Many lawyers only show up at Series A. We’re here for the “Seed from Grandma” stage.

Our Perspective

We offer clear, founder-friendly tools to document early support in ways that are legally sound—and relationship-safe.

As part of your service plan, we can help you:

  • Choose the right format for early contributions (gift, loan, convertible note, etc.)

  • Document sweat equity contributions fairly and legally

  • Create founder agreements that spell out roles, contributions, and equity terms

  • Draft Friends & Family contribution agreements or side letters

  • Identify red flags before they become dealbreakers during later fundraising

From Love to Legal: How to Handle Friends, Family & Startup Funding Without the Fallout

Starting with love and support doesn’t mean skipping the legal. This episode unpacks how to honor relationships and build a fundable brand—without the messy fallout.

Raise Smart. Protect Relationships. Have Clarity.

Our service plans include access to the guidance and agreements that make early funding clean and confident.

Learn more about what we do