I’m curious how often families lend money to a member of their own, to start a business or make an investment.

If for instance, someone wanted to open a restaurant, a common method of raising capital would be to ask family members to pitch in their cash and/or credit cards.

In my head, I assume this must go wrong 90% of the time. Do you think I’m right about that?

Do you have any experiences or stories to share that involve someone borrowing from their family to open a business?

Also, when families lend money to someone to open a business, do they expect the money back with interest, and are they okay with it failing? Or do they expect their money back no matter what, even if it fails?