Economics · Venture Capital and Investment Regulatory Framework

Consider the following statements regarding the venture capital and regulatory framework in India: Statement 1: The investment lifecycle of a venture capital fund is characterized by an investment period of capital deployment followed by a harvesting period focused on exit opportunities. Statement 2: In India, Category I Alternative Investment Funds (AIFs) include venture capital funds that enjoy a tax pass-through status under the Income Tax Act, 1961. Statement 3: A full-ratchet anti-dilution provision adjusts the investor's conversion price to the lowest price offered in a new down round, regardless of the amount of capital raised. Statement 4: The venture capital method of valuation determines the pre-money valuation of a startup by discounting its estimated terminal value back to the present using a high target rate of return. Which of the following summaries is correct?