Week 8 Reading Reflection

Sources of Capital for Entrepreneurial Ventures

1. As a very risk-averse person, I was surprised by the use of social lending/crowdfunding. On top of the riskiness of internet-based sights, knowing that I would be giving my money to ventures that couldn't get loans from banks is not something I would be okay with. Even $25000 is a lot to give to risky venture.
2. Reading about the myths, I really thought that venture capitalists would be satisfied with a reasonable return on investment. I was a little confused and read it over again twice before I concluded that my original assumption was actually wrong.
3. Question 1: I am very curious about angels: How do angels expect such a high rate of return? And how often do they typically get that? Or what is the average return of all angel investors? Question 2: What are some strategies that entrepreneurs can use when they are having a problem of control with the venture capitalists?
4. If I had to disagree with something I guess it would be in terms of direct public offerings: I was glad to learn about them, I have been through many accounting classes and hadn't heard of that kind of equity financing yet. But I think specific disclosures/info requirements should be required for all types of financing.