Cake's 409A costs $1,500 and is completed in 3 business days. The price includes expert consultation and full methodology documentation. Two 409As per year are included on the Team plan. One-off 409As are $1,500 each. Traditional standalone providers typically charge $3,000 or more for the same assessment.
The $1,500 price covers the full 409A process: an assessment of your company's financials and cap table data, a valuation report produced by qualified practitioners, and a methodology document that explains how the fair market value number was reached. You can review and defend that methodology in an audit or diligence process.
The 3-business-day turnaround starts from when you submit your information. Most founders find the information request straightforward: recent financials, cap table data already in Cake, and answers to a short set of questions about your company's stage and recent activity. Having your cap table already in Cake means the data-gathering step is faster than working with a standalone provider.
The consultation included in the price means you have access to someone who can explain the valuation result, what it means for your option grant pricing, and what inputs drove the conclusion. That context is useful before issuing grants to employees for the first time.
Price context: traditional 409A providers typically charge $3,000 to $5,000 for the same assessment. Cake's pricing reflects the efficiency of having your cap table data already in the platform. The methodology transparency is not standard practice with every provider at any price point.
This article is designed and intended to provide general information in summary form on general topics. The material may not apply to all jurisdictions. The contents do not constitute legal, financial or tax advice. The contents is not intended to be a substitute for such advice and should not be relied upon as such. If you would like to chat with a lawyer, please get in touch and we can introduce you to one of our very friendly legal partners.
