Week 8 Reading Reflection

Questions

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?

I found the discussion about the types of stock surprising in that there is the potential for a lot of creativity in negotiating and structuring a deal with potential investors.  The ability to take debt to equity with some type of a convertible note is very powerful.

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

The chapter touched on social lending and crowdfunding but did not go into detail distinguishing between the two and also elaborating on crowdfunding and its potential uses.  This is an area that I need to study further.

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

What is the best way for nonprofit, caused based, or hybrid (for profit and nonprofit) organizations to raise funds?

How do potential investors like venture capitalists and angels evaluate an entrepreneur who has tried and failed before approaching them?

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

In the venture capitalist myths section, the author highlighted the importance of the management team over the business idea.  I believe that this is true but it’s more like 1a and 1b instead and 1 and 2.  If the business idea is not sound and with upside, no management team can salvage it.

Additionally, the author did not speak practically about how entrepreneurs should identify VCs, angels, and other funding sources.  Online resources, links to major directories, etc. should have been a part of the chapter or in the sections after the main chapter content.