Terms for friends and family equity

My understanding is that all equity needs to be treated the same for each series. IE all preferred has the same terms, all common has the same terms. You could conceivably create a different series for F&F (series A) than investors (series B) but I have not seen that in search deals. I think it will complicate things more than you want to offer different terms to different investors. For example, what will you tell 'professional' investors if you are offering better terms to your friend than to them when your friend did not drive the deal or add any value?

Depends on who is investing in this case, as "friends & family" in a deal could get messy... Firstly, ALWAYS SEEK COUNSEL FROM YOUR PROFESSIONALS. Next, like with professional investors, there would be negotiation on the terms. Of course, you should always shoot for terms more favorable to your side, regardless of the investor. Don't let the relationship(s) and emotion overtake your decision-making, especially when it comes to equity investments. Good luck!