How do I get a 409A valuation? What does the process look like?

It's more straightforward than people think. Here's what actually happens.

Step 1: Engage a valuation firm. You sign an engagement letter, agree on scope and fees. Takes a day.

Step 2: Send your documents. The firm will send you a request list. Typical items include:

• Cap table (fully diluted)
• Most recent financial statements
• Financial projections or budget (if you have them — many early-stage companies don't, and that's fine)
• Last funding round documents (term sheet, stock purchase agreement)
• Articles of incorporation / certificate of incorporation
• Any convertible notes or SAFEs outstanding
• Board meeting minutes (recent)
• Option plan documents

For an early-stage startup, this takes maybe an hour to pull together.

Step 3: The firm does its work. They'll analyze your capital structure, apply valuation methodologies, allocate value across your equity classes, and determine the FMV of your common stock. They may come back with a few clarifying questions. At a good firm, you'll have a draft report within 1–3 weeks depending on complexity.

Step 4: Review and finalize. You review the draft, flag anything that looks off (wrong share counts, stale cap table data), and the firm issues the final report.

Step 5: Use it. The concluded FMV becomes your strike price for option grants. Your attorney or equity management platform (Pulley, AngelList, and similar) plugs the number in.

The heaviest lift is on the valuation firm, not on you. Your time commitment is typically 2–3 hours total — mostly gathering documents and answering a few questions.