What I first found interesting early in the chapter was the part that mentioned commercial banks were not the only source of debt financing. Manufacturers are actually another source that I would have never thought of, especially in terms of getting machinery and other tools I might need for the business's daily operations. One other thing I found really interesting was the important of crowdfunding. I see it amongst my friends and usually think that it's small time and that those who are in the major leagues don't need to do that.
Some things I found confusing though, were the disadvantages of debt financing and the concept of the Venture Capitalist. What confuses me about the first is that it is encouraged to use debt financing as one way to fund your business project however the disadvantages almost sound bad enough to negate using it altogether. Not sure why it would be an option if it could put you in such a bad spot. Then as far as the Venture Capitalist goes I didn't know that it was more of a relationship than an just a transaction of investment to project. I also didn't know that the ideal Venture Capitalists looks at managerial experience and is mainly concerned on the return on investment. What if some Venture Capitalists were not like this? Then what?
Some questions I would ask the author would be:
- Have you ever gone to fund raise for a business venture and if so how much did you raise.
- What could you have done differently?
- Do you think the business idea was worth more than what you received in funding?
Lastly, something I think the author got wrong was the boxed up description of the venture capitalist. I don't believe that all venture capitalists seek only the return on investment. Maybe some of them prefer overall success of the venture? or seek a career to maintain for life?
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