Question 1. [11 points] A startup receives two term sheets for a $2 million investment in a Series A round from two different VCs: VC-West, a top-quartile VC, and VC-East, a middle-of-the-pack VC. The two term sheets have identical terms (including identical investment amounts), with only one exception: the term sheet from VC-East values the startup at a pre-money valuation of $6 million, and the term sheet from VC-West values the startup at a pre-money valuation of $5 million. The founder of the startup decides: The most important factor when choosing a VC is to minimize my dilution. Therefore, I will raise capital from VC-East because it offers a pre-money valuation that is 20% higher, which will minimize my dilution. Is the founder right in making and motivating this decision? Why or why not? What advice would you give her