When Lee* was approached by a good friend to invest in an expansion of her event management business he was excited at what he thought was “a more novel investment”. Instead, it ended not only his friendship but also his long-term romantic relationship.
“Even beyond the money, it was the most painful, upsetting financial experience of my life,” Lee said. “Unquestionably.”
He had previously invested in businesses run by friends and family before, spending about “$20,000 to $30,000” he said. This time, however, buoyed by his comfortable financial situation, Lee invested more than $50,000.
Other friends also invested, which he said made it more attractive.
“This investment carried something beyond potential monetary gain,” said Lee. “It was something you’re potentially doing with a friend, with other people you find interesting.”
Lee lost not only a friendship, but…
