1. Which of the following statements is false?

a.It is difficult for startups to qualify for bank loans.

b.Corporate VC arms are structured similar to independent venture capital funds

c.While sometimes an entrepreneur may be able to get funding from customers, they may demand custom features or exclusivity.

d.Entrepreneurs' pitch should be tailored to type of investor they are seeking funds from.

2. Which of the following statements is false?

a.The required return for different rounds of financing declines as the start-up moves from seed stage to early stage to expansion.

b.Each round of financing has a certain objective

c.Because mezzanine financing is obtained quickly with little due diligence on part of lender, required returns are lower than bank loans.

d.As a general rule, after all financing rounds, founders' ownership is not taken below 10-20%.

3. Which of the following statements is false?

a. Usually, the option pool set aside for future employees is between 5-10% of total shares.

b.The costs of venture capital to founders include dilution of ownership, liquidation preference and sharing control.

c.Important factors that VCs consider when screening include the market opportunity, uniqueness of solution, durability of competitive edge, and management.

d.Many VCs limit how often they raise funds and the size of the funds that they raise.