Starware Software was founded last year to develop software forgaming applications. The founder initially invested
$800,000
and received
11
million shares of stock. Starware now needs to raise a secondround of capital, and it has identified a venture capitalistwho is interested in investing. This venture capitalist willinvest
$1.60
million and wants to own
13%
of the company after the investment is completed.a. How manyshares must the venture capitalist receive to end up with
13%
of the company? What is the implied price per share ofthis funding round?
b. What will the value of the whole firm be after thisinvestment (the post-money valuation)?
Question content area bottom
Part 1
a. How many shares must the venture capitalist receive to end upwith
13%
of the company? What is the implied price per share ofthis funding round?The venture capitalist will receive
enter your response here
million shares. (Round to threedecimal places.)
Part 2
The implied price per share is
$enter your response here
per share. (Round to the nearest cent.)
Part 3
b. What will the value of the whole firm be after thisinvestment (the post-money valuation)?
The value of the firm will be
$enter your response here
million. (Round to three decimal places.)
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am