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?
This chapter taught me quite a few things about the different type of investors. I was surprised that there were so many different sub-categories of investors. I had heard the term angel investor before but didn't realize there were five different groups of them. This chapter made it seem like there should be no reason a start-up should be having financing issues.
2) Identify at least one part of the reading that was confusing to you.
This chapter had a lot of law related terminology that was pretty confusing. When it talked about DPOs and the Rule 504 exemptions, I didn't quite understand the differences in the type of disclosures that were required/
3) If you were able to ask two questions to the author, what would you ask? Why?
I would ask the author if a "sophisticated" investor can also be classified as an angel investor or is there a difference. I would ask this because the chapter made it seem like there was a difference but the definitions were nearly the same. I would also ask the author how does a start-up get in contact with angel investors. It said that they are more available now more than ever but doesn't say how they are normally contacted about financing.
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 the author said. I thought it was interesting that venture capitalists expect a 60%+ return on investment. I suppose it is to be expected because they are taking a big risk but that seems like an unreasonably high return. (The author does mention that because of the risk they expect unreasonably high returns though.)
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