Starware Software was founded last year to develop software for gaming applications. The founder initially invested

$$900,000$ 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\mathrm{.}20$ million and wants to

own $39\%$ of the company after the investment is completed.

a$.$ How many shares must the venture capitalist receive to end up with $39\%$ 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$)?$