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?
Answer: There was a part in the reading that explained "If 1 percent of those entrepreneurs' wealth were available for venture financing, the pool of funds would amount to $4.4 billion!" That's so insane to wrap my mind around. 4.4 billion dollars is so much money. Also it goes on to say that "If the typical venture deal took $200k there would be the potential of 27,500 deals!" I'm surprised that that isn't done more in the world!
2) Identify at least one part of the reading that was confusing to you.
Answer: The only part of the text that was even a little confusing to me was the picture of the financing continuum. It depicts the typical financing for start-up companies yet to me the picture doesn't really make any sense. It starts saying owner's money of 10-100k goes to family and friends which goes to angles and then the prices of the money go up and then go down and then go back up to 5 million at the end. It was just a very confusing picture that I think could've been done better.
3) If you were able to ask two questions to the author, what would you ask? Why?
Answer:I would ask him if he ever had a problem with debt financing or with equity financing? This would help me figure out which one was better and also help validate the textbook. I would also ask him if he had ever gotten money from an angel investor of any sort and what he put that money towards!
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
Answer: In the section called "The search for capital" it starts by saying every entrepreneur planning a new venture confronts the same dilemma: where to find start-up capital." I disagree with this because I know many entrepreneurs that since they were born into a rich family, their parents would just give them money to start their start up with. Or there are also times where someone starts a start-up company that blows up and they never need any money since their company is producing so much revenue.
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