Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800
Posted: Sun Jul 03, 2022 12:56 pm
Starware Software was founded last year to develop software forgaming applications. The founder initially invested $800,000 andreceived 11 million shares of stock. Starware now needs to raise asecond round of capital, and it has identified a venturecapitalist who is interested in investing. This venture capitalistwill invest $1.60 million and wants to own 13% of the company afterthe investment is completed.
a. How many shares must the venture capitalist receive to end upwith 13% of the company? What is the implied price per shareof this 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 shareof this funding round?The venture capitalist will receiveenter your response here ___ million shares. (Round to threedecimal places.)
Part 2
The implied price per share is $enter your response here pershare. (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 thefirm will be $enter your response here million. (Round tothree decimal places.
a. How many shares must the venture capitalist receive to end upwith 13% of the company? What is the implied price per shareof this 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 shareof this funding round?The venture capitalist will receiveenter your response here ___ million shares. (Round to threedecimal places.)
Part 2
The implied price per share is $enter your response here pershare. (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 thefirm will be $enter your response here million. (Round tothree decimal places.