How many shares must the venture capitalist receive

Reference no: EM131993799

Starware Software was founded last year to develop software for gaming applications. The founder initially invested $900,000 and received 10 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 33% of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with 33% 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)?

Reference no: EM131993799

Questions Cloud

How long does it take for the water to reach the boiling : An iron boiler of mass 236 kg contains 870 kg of water at 19°C. A heater supplies energy at the rate of 51900 kJ/h.

State your current cash balance if you have : State your current cash balance if you have the following information: total cash receipts of $900,000; a cash balance at the end of last year.

What is the specific heat of the substance : A 196 g sample of a substance is heated to 321°C and then plunged into a 98 g aluminum calorimeter cup containing 129 g of water and a 19 g glass thermometer

Identify where the issue falls in the policymaking cycle : Topic - The Roles of Healthcare Professionals in Implementing Clinical Prevention and Population Health. Identify where issue falls in the policymaking cycle

How many shares must the venture capitalist receive : Starware Software was founded last year to develop software for gaming applications. The founder initially invested $900,000 and received 10 million shares.

State what factors need to be considered when tendering : State what factors need to be considered when tendering an estimate for a contract.

What is the stocks expected return : What is the stock's expected return? Round your answer to 2 decimal places. Do not round intermediate calculations.

What distance did the elevator travel : a) What distance did the elevator travel? b) What was its total displacement? c) What is the average speed?

Calculate the wacc including all four classes of liabilities : There are four sets of liability holders on the balancesheet. Calculate the WACC including all four classes of liabilities.

User Account

All Pages