How Do I Get a 409A Valuation?

You get a 409A valuation by hiring an independent appraiser, sending them your cap table and financing documents, and having your board adopt the fair market value they report. Do it before you grant stock options, then refresh it at least every 12 months and after any material event.

Who can do a 409A valuation?

An independent appraiser. Independence matters because the IRS rules give a presumption of reasonableness, called safe harbor, to a value set by an independent appraisal dated within 12 months of the grant.

You can set the value yourself or use a spreadsheet. You give up that presumption if you do. If the IRS later disagrees with your number, the burden sits with you.

What are the steps?

1. Pick a provider. Look at method, turnaround, what is included, and whether a person reviews the report.
2. Gather your documents. Most providers ask for the same core set:
   • Your current cap table.
   • Your charter or certificate of incorporation.
   • Financing documents, such as SAFEs, convertible notes, or preferred stock terms.
   • Recent financial statements and any projections.
3. Submit and answer questions. The appraiser may ask about your stage, recent rounds, and plans.
4. Receive the report. It states the fair market value of your common stock as of a valuation date.
5. Board action. Your board adopts the value and sets option strike prices at or above it.

How long does it take?

It depends on the provider. Typical firms take 2 to 4 weeks. Big Four firms take 4 to 8 weeks. The clock usually starts when the appraiser has your complete documents, so the fastest step you control is sending a clean, complete set on day one.

How much does it cost?

Typical firms charge $3,000 to $5,000. Big Four firms charge $8,000 or more. Many founders pay that once, then pay again for each update after a round or a year passes.

When should I get one?

Get one before you need it. Common moments:

• Before your first option grant to an employee, contractor, or advisor.
• After a priced round, SAFE, or note, since a financing is a material event.
• Before a grant more than 12 months after your last valuation.
• When an auditor or acquirer asks for your 409A history.

Safe harbor is a presumption, not a promise. This is not legal, tax, or accounting advice. Talk to your counsel about your specific grants.

How does 409A.io work?

409A.io is $99/month, billed monthly on a 12-month term, with everything included.

• An audit-ready report within 48 hours of receiving your documents.
• OPM backsolve to your most recent financing, cross-checked with guideline public companies.
• Every report reviewed by a valuation professional from the MELD team before delivery.
• Updates upon request and material-event coverage during your term.
• Direct auditor support.

It is the same methodology used by firms charging $3,000 to $5,000. Cap table upload takes under 5 minutes, and CSV is supported.

409A.io was spun out of MELD Valuation, which has completed 10,000+ valuations. It is built for pre-seed through Series A. If your cap table has non-standard instruments or a complex waterfall, you graduate to MELD. Tell us your situation and we will point you the right way.

What is the next step?

Start at get-started. Subscribe, complete the short onboarding form, and upload your cap table and documents. Your report arrives within 48 hours of receiving them.

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