Week 13 Reading Reflection

Week 13 Reading Reflection

1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
Something I felt surprising in this reading, Chapter 14: Valuation of Entrepreneurial Ventures, is that the P/E method is not something that I feel venture capital companies use to value, more so equity holders on the public markets.

2) Identify at least one part of the reading that was confusing to you.
This concept that Venture capital firms use P/E to value companies. I would think that venture capital funds typically invest in companies that have yet to go public or offer any type of share.

3) If you were able to ask two questions to the author, what would you ask? Why?
I would obviously ask him why he thinks that vc uses p/e to measure? Also, what does he feel is more telling? Discounted Earnings Method? Discounted Cash Method?

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
No, I do not feel that the author was particularly wrong, but I still wonder why they referred to the P/E instead of a DCF or something similar.