Wednesday, February 24, 2016

Week 8 Reading Reflection

1.) The most surprising thing in the reading this week was the social lending for entrepreneurs section. I heard about crowdfunding before, but didn't know that with social lending web based enterprises basically referee peer to peer funding for start ups who can't get capital otherwise. It was very intriguing that some of these websites are making money by helping others make money.

2.) The most confusing aspect of this chapter was definitely the equity funding. It seemed weird to me that a capitalist would agree to not be repaid a certain amount in return for parts of the company. It seems like a risky way to do business.

3.) Question 1: If you could give advice to a start up about the first step to figuring out which route to go for getting capital what would it be?
Question 2: Angel investors seem to have very many different names, do they identify themselves this way, or does a start up have to figure this out after already signing a deal and then working with them?

4.) I think the author may have forgotten to include the fact that some Angel Investors work in groups. In my experience this is the most common way for Angel Investors to network with start ups and it is important to include in the text.

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