Week 8 Reading Reflection

This reading was all about sources of capital for entrepreneurs- or in other words, where they get their money. Something that wasn't necessarily confusing to me, but rather just a new concept, was the idea of debt vs. equity financing. I obviously know what it means to be in debt, but had never heard the term equity financing. The paragraph later translated into "debt financing," which is where I did end up getting confused. A few other terms I hadn't heard before were social lending and crowdfunding. This chapter was an entirely new concept for me, as I had never really thought about how entrepreneurs (some anyways), become so successful. I found the idea of public offerings vs. private placements interesting as well. Stocks are important in order to make more money, but I disagree with the author of its importance. If I could ask the author two questions, I would ask for an example of a "sophisticated" investor, maybe a celebrity that is well-known that I could relate it back to. I would also ask about more myths to be dispelled about venture capital, as that was a another new term to me. Since so much was new material to me, I found this reading pretty interesting.