Two or three resourceful founders, no matter their social circles or financial means, should be able to find $150k.

Yes, but how is that a "friends and family" round if none of it is raised from friends and family?

EDIT: If you assume your friends and family can each spare $500 (which given a median household income of $51,000/year or $3,500/month after federal taxes... Maybe half the U.S. Population in a given month can spare that after rent, food, childcare, auto, and debt repayments.) then you need to get 3000 "yes"s to get to 150k. At a 20% yes rate, that means you are asking 15,000 people for money. It makes far more sense to ask people in the upper decile, who make $145,000 per year of household income and who might have some investment income that they can throw at you. Alternately, to raise from people who regularly invest in early-stage businesses. If you don't have any such folks in your social circle, you are going to be busting your ass and trying to make cold intros.

2-3 resourceful founders should be able to find 3-15 people to kick in $5-50k each. A friend could be a former boss, a customer, the owner of the local coffee shop, a mentor, a classmate, a teacher, whatever. Don't start quoting average incomes and such. This is not about average. If you really want to talk about average, the average coffee shop, pet store, hair salon, restaurant, raises $150k.

All those businesses have well known models and physical assets that can act as collateral for a bank loan, possibly through the SBA.

> This is not about average

That is my entire point, that you are speaking from not from the perspective of a person whose connections are of average wealth. If you have a close enough relationship with that many people who have 10k (that is, 2 months pre-tax income for most people) they can just put into a highly risky venture, you are starting from a position of economic privilege: wealthy people trust you with their money.

Is it possible to build a consulting practice and thereby build relationships with people who will then be confident in your ability to execute? Sure. Is it possible to go to a college with wealthy professors and inordinately impress them? Sure. It is possible in the United States to work yourself into a higher class. All I'm saying is that being able to collect $150k from your connections certain things from your social position.

I don't doubt it's easier but if 2-3 co-founders not able to round up $150k from your network to start a business then you are not cut out for such a thing. Building a startup basically consists of constantly persuading people to do things. You have to be able and willing to do this without tossing out the "woe is me" card.

They weren't tossing out the "woe is me" card. They were pursuing an option for raising money that you think is too hard.