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Starware Software was founded last year to develop software for gaming applications. The founder initially invested $900,000 and received 12 million shares of stock. Starware now needs to raise a second round of? capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.00 million and wants to own 18% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 18% of the ?company? What is the implied price per share of this funding? round? b. What will the value of the whole firm be after this investment? (the post-money? valuation)?
a. How many shares must the venture capitalist receive to end up with 18% of the ?company? What is the implied price per share of this funding? round?
The venture capitalist will receive nothing million shares. ? (Round to three decimal? places.)
The implied price per share is ?$ nothing per share. ?(Round to the nearest? cent.)
b. What will the value of the whole firm be after this investment? (the post-money? valuation)?
The value of the firm will be ?$ nothing million. ? (Round to three decimal ?places.)
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