Week 8 Reading Reflection

Chapter 8: Sources of Capital for Entrepreneurs

One thing that surprised me was the concept of intermediate loans given out by commercial banks.  I was surprised by this because these loans require repayment and often times a collateral, such as machinery, stock, real estate, and other assets.  One thing I was confused about was the Social Lending portion of the chapter.  What makes social lending more efficient than getting a loan from a bank?  There are still interest rates and an allotted time-frame to repayment of the loan. 

The first question I would ask the author is "what is your recommended 'balance' between debts and equity for an entrepreneur?"  I would expect a ratio of around 35-40% equity, and 60-65% debts.
My second question would be "exactly how complicated, lengthy, and expensive can the process of raising equity capital be? And is going through this process worth the possible loss of money if the stock offerings are not as successful as originally thought?"

I honestly could not find anything that I thought the author was wrong about.  Probably due to the fact that I am not all that familiar with this subject.  I sure hope he wasn't wrong about anything, because I believe all of this information from the chapter.