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1. If the investment made by VC 2 in round B of financing was $500,000 rather than $3,000,000 for the same number of shares the

1. If the investment made by VC 2 in round B of financing was $500,000 rather than $3,000,000 for the same number of shares the post money valuation of the company would be $2,000,000.

True

False

2. Profits of Venture Capital funds that are structured as a limited partnership will typically give 80% of the profits to general partners and 20% to limited partners.

True

False

3. New Lab and Antler are competing with each other to fund the next billion-dollar company. These two entities believe that competing with each other to attract people with innovative ideas will lead to value creation.

True

False

4. If the investment made by VC 2 in round B of financing was $1,000,000 rather than $3,000,000 for the same number of shares; the ownership percentage for the founders would be 25% and the value of its ownership percentage since the pervious funding round A would be the same.

True

False

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