Choose the correct answer:

1) The right of first refusal differs from pre-emption rights: A. because it belongs to new instead of old investors B. because it applies to the sale of existing shares instead of newly issued shares C. because it applies to shares issued to create an employee stock options pool

2) IPO Underpricing means that: A. The market price is not enough to raise the target fundraising B. The IPO offer price is lower than the target price set by the company C. The IPO offer price is lower than the market price on the first day of trading

3) In the Discounted Cash Flow valuation model, most of a ventures value typically comes: A. from the free cash flow within the chosen time horizon B. from choosing an appropriate discount rate C. from the terminal value

4) The term double dip refers to: A. higher preferred terms and higher conversion threshold at liquidation B. multiple liquidation preferences and more control power in daily operation C. the cumulation of preferred terms and their conversion into common stock

5) The following investor group tends to invest in larger amounts in later stage of start-up companies: A. VC B. CVC C. Angel Investors