The technology start-up, Fincorp Pvt. Ltd., is in its early growth stage and is evaluating multiple sources of financing including Angel Investment,…

(i) False: Justification: Early-stage start-ups usually lack stable historical earnings and predictable cash flows. Therefore, DCF is unreliable. (ii) True: Justification: VC financing is commonly structured in stage (Seed. Series A, B, etc.). Staging: Reduces information asymmetry, moral hazard, Links funding to milestone achievement, Limits downside exposure. Exposure. It is a key risk-management mechanism in venture investing. (iii) True: Justification: Bootstrapping involves self-financing through personal savings or internal cash flow. Advantage: No equity dilution, Retained control. Disadvantages: Limited capital, Slower scaling, Higher founder financial risk. Thus, growth potential may be constrained. (iv) False: Justification: Angel investors typically invest in the seed or very early stage, often before institutional VC funding. They usually take minority stakes and exercise relatively informal control compared to VCs. Venture capitalists invest at later stages and demand stronger governance rights such as board seats, veto rights, and protective provisions.