Week 8 Reading Reflection

In this week’s reading reflection, Kuratko writes about the different sources of capital for entrepreneurs. This week was one of the more interesting sections that I’ve read thus far and I wanted to make sure I read this chapter meticulously because financing is important when it comes to entrepreneurship.

In the beginning of the chapter, Kuratko lists the various sources of capital and displays a financing continuum chart for the readers to see. For me, I was unaware of the ways an entrepreneur can get funding and this chapter definitely was a big help. Commercial loans, public offerings, private placements, convertible debentures, venture capital, and informal risk capital were all listed in Kuratkos sources for capital. It was surprising for me to see so many ways for funding and to be honest, I only knew two; venture capital and public offerings.  

The part that was confusing to me at first was the differences between a venture capitalist and an angel investor. Angel investors and venture capitalists both invest in a business venture that have high rate of return, provides capital for start-ups during early stages, and both take on risks. If I had to ask the author a question, I would ask Kuratko what she thinks is the major difference between the two investors.

I don’t think there was anything that the author got wrong. This chapter was enlightening and I enjoyed reading about the different sources of funding.