1. If a business has no liquid assets then negative cash flow from assets can not be sustained if the business does not have access to outside capital.

True

False

2. According to Dermot Berkery founders must present a good plan that supports a sequence of financing rounds where each previous round benefits from the subsequent round.

True

False

3. Sequoia Capital owns 87,171,450 of the issued class B shares of Dropbox. These shares will convert to Class A common shares just prior to the IPO. All of these shares were received in the series A financing.

True

False

4. According to Bob Zider in his article “How Venture Capital Works”, at least 90% of venture capital money flows into the start up phases of businesses.

True

False