My Week 8 Reading Reflection

In Chapter 8, what most stood out to me was the emphasis on the fact that not only does a venture capitalist need to approve of its entrepreneur, but the entrepreneur must also make sure that the VC is the best fit for them too. A perfect real-life example of this is the TV show Shark Tank. Even if an entrepreneur has the exact same offer from several sharks, they still have a lot to think about because they must decide whose area of expertise will most benefit them and their business. Choosing the right VC is a very important decision for a company, as if they choose wisely it can be so much more for them than simply a check.

One part of the reading that was confusing to me was all the myths about venture capitalists. I was surprised to read that people really think that they would only need a basic summary of information or that they don't consider management an important factor in their decision making. I would not think either of these things to be true, as obviously the VC will need in-depth details of the company they are considering and management is important because it is who they will be dealing with and who will be using their money.

If I could ask the author two questions, I would ask, "Have you ever sought out a venture capitalist?". I would also ask, "What do you consider to be the most important quality an entrepreneur should look for in a potential VC?". I would be very interested in hearing his responses to both of these questions.

I did not think that the author was wrong about anything that I read.