Week 8 Reading Reflection

Good Afternoon Folks,

This week we are going to talk about raising capital through the week 8 reading reflection!! Lets get started.

Biggest Surprise?

My perspective of venture capitalists was completely different before reading this chapter. For one, i thought that venture capitalist was pretty much the only way to help raise capital. I never really thought about angels or taking on debt as a possibility for raising capital. Also, the stereotype in my head of venture capitalists were greedy people who couldn't come up with an idea so they throw money into yours so they can have power and make more money. Instead, there is a lot of thought that goes into investing in an idea and it does not necessarily have to be innovative technology. Very interesting.

What Confused Me?

Can companies utilize both debt and equity financing without issuing stock, or do they need to go public to use those methods. The way the author explained it confused me a bit, and he made it seem like any company can do it.

Questions?

1. The chapter made it seem like people did one thing or the other. They either practiced deb and equity financing, utilized IPO's, or used venture capitalists. Do some companies use more than one of these methods to raise money, or do they typically just stick to one method?

2. I know that all ways of raising capital have their pros and cons, but do you have a method you prefer over another overall? 

Disagreements?

The only disagreement I have is that the author seems a little bias towards venture capitalists, and he does not seem to mention any real negatives of using them. Although they are probably very effective to use, there must be some cases or negatives of venture capitalists. Besides that, really informative chapter and I really enjoyed it.