Week 13 Reading Reflection

Chapter 14: Valuation of Entrepreneurial Ventures

1) The part that stood out the most was about emotional bias. It is important to know that just because someone is passionate about an idea, does not mean that it is a guaranteed success.

2) One part of the reading that was confusing to me was about liquidation value. I am unsure on how exactly it is calculated and which things are taken into account.

3) The first question I would ask the author is: Is it possible to succumb to emotional bias, but still have an extremely successful business, or does it cancel out? I want to know this because I am curious if someone can be emotionally biased, but for the right reason.
The second question is: When it comes to the weakness of divergent goals, why would the entrepreneur not be clear about theirs goals to the investors before making a deal? I want to know this because I am curious for why the wouldn't avoid the weakness of divergent goals.

4) I believe that the author is wrong when it comes to not sighting sources. The author claims that ownership and valuation is typically calculated on a fully diluted basis, but there are no sources to where this claim is coming from. Anytime a claim is brought to my attention that does not have sources, I disagree.