For me, the biggest surprise from the reading was that there is such a thing as an "Angel Investor". While I was previously aware of different kinds of wealthy individuals who focus on investing in small, start-up businesses, the fact that there is a specific term for them was quite interesting to me. I was also surprised by the speed with which venture capitalists were able to reach a "no/no go" decision with respect to their evaluations of investment opportunities. 6 minutes for an initial screening is quite fast in my opinion.
I was most confused by the fact that most venture capitalist firms tend to invest in mature, established businesses, as opposed growing start-ups. I believe this confusion stems from the portrayal of venture capitalists in the media and on TV. If you've every seen HBO's Silicon Valley you'll know what I'm referring to.
Given the opportunity to ask two questions, I would ask what is the best way to find angel investors and what private placements, which are regulated by Regulation D of the SEC, specifically refer to. The first question stems from the quote in the reading by William E. Wetzel, Jr. which claims that often times angel investors can be found "within 50 miles or within a day's drive at most". While small businesses are almost certainly headed by entrepreneurs, angel investors are probably not in small business environments. I would ask the second question simply because I did not fully understand what a private placement is.
I did not find any aspect of the reading where I believed the author was wrong.
No comments:
Post a Comment