1) What was the biggest surprise for
you in the reading? In other words, what did you read that stood out the
most as different from your expectations?
I was slightly surprise that you have to answer a bunch of questions if you just want to start a business. I suppose it does help regulate things a bit, though. However, the biggest shock is how poorly the banks are doing. According to estimates, very few commercial banks will survive over the next ten years. I just hope the economy does well and there is room for innovation in the market.
2) Identify at least one part of the reading that was confusing to you.
The only thing that really confused me was why venture capitalists are so eager to put money into a an investment. Shouldn't there be a more formal process? It seems like this would be a great way to introduce a lot of risk (since there is no formal process), and that isn't a good idea.
3) If you were able to ask two questions to the author, what would you ask? Why?
(1) If you needed capital would you prefer debt or equity?
(2) As a follow up to my confusion - how could this process be better or have less risk (and if not and you think it is viable, then why?).
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
I didn't disagree with anything, but I don't think that venture capitalists have as little information about business before they invest in it. There might be some sort of reflex where after investing so many times you just figure out which are going to fail or succeed and which will fail based on only a few guidelines, but it doesn't seem like companies fail or succeed in predictable ways all the time, so how is an venture capitalist to know if something is going to succeed. It's just not viable, and that's why I think there should be a more formal method of doing this or maybe even slightly stricter regulations. It's almost like if some guy in a suit likes you (well, you better be his best friend) then you get funded and if not, then you're out of luck. Not only do human biases come into play here, but it's just not solid.
