"Week 8 Reading Reflection"

During the chapter “Debt vs. Equity”, it explains how every entrepreneur confronts the dilemma of obtaining venture capital to start their business. In some instances, they are not aware of all the possibilities of and combinations that there is to obtain capital.

1.     What surprised me the most was the other debt-financing services. Like many, I also thought that commercial banking was the only option on getting capital for a venture. Trade credit is given by suppliers who sell goods on account, factoring-is the sale of accounts receivable and finance companies are asset-based that lend money against assets such as receivables, inventory and equipment.

2.     One section that was somewhat confusing was the “Private Placements”

3.     Two questions I would ask the author are:

a.     How has industries and technologies changed the sources of capital in the last 40 years?

b.     How do you think the next generation of entrepreneurs will differ in their knowledge of getting educated in the sources of venture capital from this generation?

4.     Overall, the author was not wrong from my point of view. Instead I was able to learn on venture capital market and the different options there are for entrepreneurs. Also, how entrepreneurs can see the opportunities and put aside the myths of venture capital. Like many, I also thought that capital firms would want to control your company, but instead they are trying to make profit and make you successful.