Starware Software was founded last year to develop software for gaming applications. The founder initially invested $700,000 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 13% of the company after the investment is completed.
a. How many shares must the venture capitalist receive to end up with
13% 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)?
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
AS NOTHING IS MENTIONED, I HAVE TAKEN PRICE OF SHARE TO 2 DECIMALS, AND NO OF SHARES ROUNDED TO ZERO DECIMAL. ANY CHANGE LET ME KNOW. WILL CHANGE ANSWER ACCORDINGLY. THANK YOU
Starware Software was founded last year to develop software for gaming applications. The founder initially invested...
Please answer parts A and B 2 of 12 (1 complete) HW Score: 5.56%, 0.67 of 12 pts Score: 0 of 1 pt P 14-2 (book/static) Question Help Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 8 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...
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