CLIFF NOTES

What founders need to know about 409A valuations

Steve Allen, investor and founder of Allanytics, lays down the important facts about 409A valuations for startup founders.
About this cliff note

When you're issuing stock options to employees, getting your 409A valuation right is crucial. This comprehensive guide breaks down what 409A valuations are, why they matter, and how to navigate them effectively.

Understanding 409A valuations is essential for any founder planning to offer equity compensation to their team. In this educational video, industry expert Steve Allen shares his decade of experience from building the largest 409A valuation practice in the country, having completed over 10,000 valuations.

Key topics covered include:

  • What 409A valuations are and why they're legally required
  • The difference between fundraising valuations and 409A valuations
  • How to determine if your 409A valuation is reasonable
  • When to get your first 409A and how often to update it
  • Common pricing ranges and what to look for in a provider
  • The importance of safe harbor protection
  • How to use 409A valuations as an effective employee retention tool
  • Tips for educating employees about their equity compensation

Whether you're a first-time founder or scaling your team, this video provides practical insights to help you navigate 409A valuations confidently and use equity compensation to attract and retain top talent.

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