19) The conversion price for uncapped convertible debt will be linked to the price that a venture capital fund pays for shares in a funding round. True or False?

20) Venture capitalist X invests in 20% (1,000,000 shares of common stock) of a company for $10 million dollars and in the next round of financing the company issues an additional 5 million shares of common stock to venture capitalist Z for $5 million dollars. The stake of Venture capitalist X in the company is reduced to 10%. This is an example of dilution. True or False?

21) Founders of a company and venture capitalists generally agree on the valuation of the company without having to negotiate. True or False?

22) A Higher valuation of the company by the series A investors will mean that the owners of uncapped convertible debt issued by the company will receive more shares when they convert the debt into equity than if a lower valuation had been assigned to the company. True or False?