Fundraising
409A Valuation
Quick definition
Independent valuation of common stock used to set option strike prices.
A 409A valuation is a third-party appraisal of your common stock's fair market value, required by IRS Section 409A. It sets the strike price for stock options. Must be refreshed after priced rounds and annually to maintain safe-harbor protection.
Related fundraising terms
SAFE (Simple Agreement for Future Equity)
Convertible instrument commonly used for early-stage rounds.
Convertible Note
Debt that converts to equity at the next priced round.
Cap Table
A record of all ownership interests in your company.
Pro Rata Right
An investor's right to maintain their ownership % in future rounds.
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Need a 409A valuation?
We coordinate independent 409A valuations for option grants, refresh them after material events, and handle the audit trail.
