A start-up company will often turn to various sources of financing to raise the capital needed to launch its project. After the entrepreneur’s personal capital outlay, one of the main sources of financing for a start-up is funding from the entrepreneur’s family and friends, also known as “community capital” or “love money”. One of the advantages of proximity capital is that friends and family don’t invest for profit, but rather to help the entrepreneur get the business off the ground. This usually takes the form of an interest-free or low-interest loan, granted without any collateral in favor of the relative. There are, however, certain risks associated with love money that need to be considered. Given the bond of trust between the relative and the entrepreneur, it is common for the loan to be granted without any written document setting out the terms and conditions. This approach is strongly discouraged. Indeed, in the event of a dispute between the parties, a loan contract drawn up in clear and precise terms will generally avoid a long and costly dispute. In addition to the loan, financing can also be provided in return for the issue of shares in the entrepreneur’s company. In other words, the family member becomes a shareholder in the start-up company. Depending on the class of shares issued to the relative, he or she may be granted rights in the company, such as voting rights or the right to receive dividends. However, these rights can be withdrawn or modulated by creating several classes of shares with different rights. This approach is particularly interesting for entrepreneurs wishing to limit the involvement of their close relations in the company. Love money is a fast and flexible financing option for start-ups. Nevertheless, it is vital that the entrepreneur takes the necessary precautions to protect both his business and his relationship with his family and friends.