what is love money 
love money refers to seed capital that has been extended by family or friends to an entrepreneur to start a business venture the decision to lend money and the terms of the agreement are usually based on the relationship between the two parties instead of a formulaic risk analysis understanding love moneylove money is usually given to entrepreneurs by family or friends when there are no other financial options available love money may be the only financing option for an entrepreneur who does not meet the criteria necessary to get credit or capital from traditional avenues like banks or other lenders love money may be used to start a new business or to provide an injection of capital to an existing business when required love money typically has no fixed repayment terms and can sometimes be given for equity in the venture love money may also be advanced as a loan or a convertible note with a more formal and structured agreement regardless of the structure it is recommended that investors only use risk capital money they are prepared to lose when providing love money investments to family and friends angel investors and love moneythe people who advance love money may also be considered angel investors but that is not always the case the term angel investors may refer to any high net worth individual who can afford to put money in a risky venture but it usually refers to accredited investors these investors will often inject cash into a new venture or when a business needs capital to continue its operations especially during the difficult early stages but they tend to have an expectation of returns and a set exit strategy to qualify as love money the angel investor would have to be in the entrepreneur s social network prior to investing 