Definition of 3 Fs

The three Fs are friends, family and fools - the people to talk to first when pitching an idea. 

Less than 1 per cent of start-ups raise venture capital so the 3Fs are important. Relying on friends who are willing to invest in you and family that feel obligated to invest in you is a great way to get started. This is why entrepreneurs spend a lot of time cultivating their social network – you never know who might be a potential funder for your idea.

This is also why I often advise my students that working for a large company initially might be the ideal way to end up as an entrepreneur later on. At large companies, employees can gain valuable knowledge about the market and make new friends who can play a significant role in future ventures, whether as a colleague, funder or acquirer. Despite the typical image of an entrepreneurial venture springing from 'two guys in a garage', most entrepreneurs have significant industry experience. [1]

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