Sunday, February 28, 2016

Week 8 Reading Reflection

In this week's reading, I was surprised that many entrepreneurs need to use debt and equity financing to fund their ventures. I would imagine that entrepreneurs would prefer to stick to one method of borrowing, although apparently this is not the case. I am surprised/confused at the venture capitalist myth that they do not want control of the business. Without having some level of control of how the company is being run, how can they be completely confident in their investment into the company? I would ask the author whether they think debt or equity financing is better in general for a small start-up company, and if they had any personal experience with either of these methods. Other than the venture capitalist myths, I agreed with the rest of the reading.

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