Develop software for gaming applications

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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.)

Reference no: EM131558817

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