Week 8 Reading Reflection

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?

 The numerous ways to obtain financing and the graphic provided that showed where you should look for the capital based on the range of your needs. I knew about some of them already, but it was good to learn and re-learn about all of them and exactly where to go.

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

 I did not find anything too confusing about the reading. It was mostly straightforward in regards to laying out the different types of funding sources and what to expect with a typical encounter with each type of financing. I think the author went into great detail and successfully summarized each type of capital.

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

 Why does the geographic area of interest matter to a venture capitalist? (Per Table 8.6) It seems like this could severely limit opportunity for a venture capitalist. I do understand that they may not want to invest in an ice cream shop in north Minnesota, but maybe a jacket store in north Minnesota - so this would limit opportunities in a geographic location, not limiting a geographic location.

I know that each stage is probably equally important, but what stage is most likely the "make or break" stage? I think I would say stage 3 is where things can go wrong completely outside of the entrepreneur's control - the other stages are fact finding and numbers typically don't lie, but I could see a slip up during the presentation that rubs a capitalist the wrong way and causes the deal to fall apart.

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

 Not necessarily a disagreement, but I wish the author would have went more into procuring capital through social lending. I think things like Kickstarter and Indiegogo are becoming a formidable method of raising capital, and although I think there is more risk for the investor, I think start-ups should be aware of the power of the publicity and capital funding.