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

$800,000

and received

11

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

$1.60

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)?

Question content area bottom

Part 1

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?The venture capitalist will receive

enter your response here

million shares. (Round to three decimal places.)

Part 2

The implied price per share is

$enter your response here

per share.(Round to the nearest cent.)

Part 3

b. What will the value of the whole firm be after this investment (the post-money valuation)?

The value of the firm will be

$enter your response here

million. (Round to three decimal places.)