You know them and you love them. These people include individuals involved in starting the company, your best friend from high school and your uncle Joe. They are intrigued by your idea and want to help your future by investing some of their nest egg. Investments from this group tend to be small, but what they require of you is minimal.
The down side is that you are now mixing your business and personal lives on a new level that may prove detrimental to your relationship. Be clear about expectations and milestones from the beginning in order to try and mitigate some of this tension. Also be aware that too many investors can fragment your decisions into several directions.