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Venture Partners has evaluated an early-stage investment in a startup company (Startco). Startco needs $4 million in financing, and SPC has offered to provide the

Venture Partners has evaluated an early-stage investment in a startup company (Startco). Startco needs $4 million in financing, and SPC has offered to provide the financing in exchange for a 40% interest in the company.

a. What is SPC's post-money valuation of Startco?

b. What is the pre-money valuation of Startco implicit in the deal terms offered by SPC Venture Partners?

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