Sunday, February 28, 2016

Week 8 Reading Reflection

During the eight week and the reading we had to do for it, I found some things that I previously had overlooked and not payed much attention to. One of the things that surprised me, for example, is the fact that start ups usually seek debt financing before equity financing. This might be due because they believe in themselves and their ability to foster a company and see it grow.
One part of the reading that was rather confusing to me was the Private placements section and the concept of direct public offering as opposed to IPO's. I found it hard to grasp the basic concept and the difference that each has in comparison to the other. If i had the opportunity to ask the author's a couple of questions on the reading, it would be about venture capital firms. I would want to know in modern day times what is the criteria that a venture capital firm has in order for them to consider your start up a good investment, also I would ask under what circumstances and to what degree of freedom would I be able to run my company without external interference in the event of equity based funding. Lastly, I happen to think that the micromanager section of angel investors is a bit biased, it just seems so negative to assume that every micro manager, hard working, self made individual is a pain in your company's future because they seek to manage and keep an eye over your operations.

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