Starware Software was founded last year to develop software for gaming applications. The founder initially invested $ 1 comma 000 comma 000 and received 9 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 $ 1.40 million and wants to own 37 % of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 37 % 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)?

a. The venture capitalist will receive nothing million shares. (Round to three decimal places.)