Automate the cap table info you need for your 409A with Cake!
As simple as filling up a form, submitting necessary business documents, and leaving it to the experts!
Startup valuation experts who held roles in major banks and Big Four audit firms such as E&Y and Deloitte.
2-3 business day turnaround, less back-and-forths, saving you time and giving you peace of mind.
Request your 409A valuation either as part of your annual plan or a one-off fee.
Complete the steps for ordering your 409A in minutes. Our 409A valuation experts have developed a streamlined and automated process, removing the administrative burden and giving you peace of mind.
Whether you're issuing stock options to attract new employees, attracting investors, or undergoing mergers and acquisitions, Cake's 409A valuation process is designed to save you time and resources, and ultimately give you peace of mind
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Cake makes 409A valuations fast and easy with our streamlined and automated process. Getting your 409A valuation can be done in as fast as a week!
Make it easy to generate the information you need for your 409A. It only takes a few clicks! Sign up hereif you haven't already, then follow the prompts for a simple upload. Complex cap table? Our CS team is happy to help!
Start the 409A process within your Cake account, submit your cap table info along with other necessary financial docs, and expect a draft of your 409A valuation within 2-3 business days.
A valuation expert will send you a video taking you through the draft and its underlying calculations, offering a 1-on-1 consultation to cover off any questions or comments that you may have. And that's it, your 409A is ready for use!
Startups need a 409A valuation to determine the fair market value of their common stock for the purpose of issuing stock options to employees. This valuation is crucial for ensuring compliance with IRS regulations and avoiding potential tax implications for both the company and its employees. Additionally, it helps maintain transparency and fairness in equity distribution, crucial for attracting and retaining talent.
A startup should obtain a 409A valuation when it plans to issue stock options to employees, typically before the first option grant and then periodically thereafter, usually every 12 months or when significant events like funding rounds occur. This timing ensures compliance with IRS regulations, helps set fair exercise prices for stock options, and maintains transparency and fairness in equity compensation.
Typically, startups need to obtain a 409A valuation every 12 months or whenever a significant event occurs that could affect the value of their common stock, such as a new funding round or a major milestone achievement. This frequency ensures that the valuation accurately reflects the current market conditions and company performance, maintaining compliance with IRS regulations and mitigating potential risks.
Inaccurate 409A valuations can lead to significant consequences for startups and their employees. If the valuation is too low, it may result in underreporting of income for employees, potentially leading to tax penalties and liabilities. Conversely, if the valuation is too high, it could inflate the value of stock options, potentially triggering excessive taxes for employees upon exercise and complicating future fundraising efforts due to perceived overvaluation. Accuracy is crucial to avoid these legal, financial, and operational challenges.
The cost of a 409A valuation typically ranges from $1,000 to over $5,000, with larger corporations potentially exceeding $10,000. This pricing structure is influenced by the size and complexity of the company, usually with startups and Series A companies generally falling within the $1,000 to $3,000 range, while larger companies with multiple funding rounds (Series B-C) may face costs of $10,000 to $15,000. With Cake, you can top up your Growth Plan with a 409A valuation at a fixed price of $1250.
Cake offers 409A valuation as an add-on to our Growth Plan. If you're in the market for a 409A valuation, you will benefit from having an up-to-date cap table software. Ensuring that your cap table information and financial documents are up-to-date are crucial to creating an accurate 409A valuation.
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