Week 8 Reading Reflection

Week 8 Reading Reflection

Sources of Capital for Entrepreneurial Ventures

 

Surprise: I found Kuratko’s statements about venture capital myths very interesting. I was surprised to hear that venture capitalists are slow to invest. Many people think that venture capitalists are quick to jump on companies and invest, but they actually make long and deliberative decisions when it comes to investments. Kuratko also mentioned that the only way to gain a venture capital investor’s attention is to make a detailed and well-organized business plan. Everything needs to be incredibly planned before any actions will be taken on the capitalist’s side.

 

Confusing: I wish that Kuratko had expanded further upon IPO. He defines it as a method of representing the registered public offering of a company’s securities for the first time. What number is considered a good or bad IPO? What is a goal IPO that a company should have by a certain number of years? I wish that Kuratko went into further detail about the background information. I may have to look it up on my own to figure out what the premise of IPO is.

 

Questions: If I could ask Kuratko a question, I would ask him, “In what ways have you personally sought debt financing?” It would be very interesting to see how an expert in the field of entrepreneurship has personally worked to find startup money. I would also be interested to find out his opinions on the debt that he did take out – what ones he thought were the best, which had the best returns, which were easiest to pay off, and which incurred the least amount of debt. I would be interested in seeing an in depth analysis of his opinions on each option.

 

Incorrect?: I found it to be interesting when Kuratko mentioned that venture capital firms do not want to control your company and tell you how to run your business. While this may be true, I also think there is are some venture capitalists who do have that goal in mind. I think it honestly comes down to picking the right venture capital firm so that no one tries to take away your rights in your own business.