Week 8 Reading Reflection

Chapter 8: Sources of Capital for Entrepreneurs

1)    What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

What stood out to me was the information about business angels. I did not know much about them before I read the chapter, so it was very interesting to find that there are actually five different types of business angels that are commonly practiced. Each angel is specific to a type of investor, their attitude, and likely hood of the types of things they would invest in.  

2)    Identify at least one part of the reading that was confusing to you.

The section on private placements was rather confusing. The book wen into depth about different “rule’s” that exist when it comes to placements at a certain level of money. Apparently these rules count as exceptions to the original rule about private placements, so that I just found rather contradicting and confusing.

3)    If you were able to ask two questions to the author, what would you ask? Why?

First question: Why is it a feasible option to use equity financing over other financing options? I would ask this because I am not aware of other financing options that are available out there, so just curious.

Second question: Could better and more effecting fundraising be created other than using social lending or crowdfunding? Since the book says it acts as a last resort sort of thing, what else could businesses use to raise funds?

4)    Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

Once again I am not the type of person to say whether or not another person is right or wrong, so in this case I would say the author was fair about the information presented. The part when the author talks about asking the “right questions” to venture capitalists was interesting and arguable, as well as the part when its mention that venture capitalists have a specific attitude and interest. Such characteristics are wavering and could easily be changed from person to person.