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StanwareSoftwarewasfoundedlastyeartodevelopsoftwareforgamingapplications.Thefounderinitiallyinvestedestionlist1$800,000andreceived12millionsharesofstock.Starwarenowneedstoraiseasecondroundofcapital,andithas identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.40million and wants to own 34% of the company after
StanwareSoftwarewasfoundedlastyeartodevelopsoftwareforgamingapplications.Thefounderinitiallyinvestedestionlist1$800,000andreceived12millionsharesofstock.Starwarenowneedstoraiseasecondroundofcapital,andithas identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.40million and wants to own 34% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 34% of the company? What is the implied price per share of this funding round? Question 4 b. What will the value of the whole firm be after this investment (the post-money valuation)? Question 5 a. How many shares must the venture capitalist receive to end up with 34% of the company? What is the implied price per share of this funding round? The venture capitalist will receive million shares. (Round to three decimal places.) Question 6 Question 7 Question 8 Question 9
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