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

$$900,000$

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\mathrm{.}60$

million and wants to own

$32\%$

of the company after the investment is completed.

a$.$ How many shares must the venture capitalist receive to end up with

$32\%$

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

$32\%$

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.$)$